World Kinect (NYSE:WKC) Announces Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• World Kinect reported earnings of $0.59 EPS for the quarter, exceeding estimates of $0.48 by $0.11. However, the company's revenue fell short at $9.04 billion, compared to an estimated $9.32 billion.
• Despite the earnings beat, shares fell 7.2% to $25.32 amid mixed analyst ratings, with a consensus target price of $29.80.
• The company announced a quarterly dividend of $0.20, increasing from a previous $0.17, resulting in an annualized yield of 3.2%.

World Kinect (NYSE:WKC - Get Free Report) released its earnings results on Thursday. The company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.11, Zacks reports. The company had revenue of $9.04 billion during the quarter, compared to the consensus estimate of $9.32 billion. World Kinect had a positive return on equity of 6.73% and a negative net margin of 1.11%.

World Kinect Stock Down 7.2%

Shares of WKC traded down $1.95 during midday trading on Friday, reaching $25.32. The stock had a trading volume of 1,369,686 shares, compared to its average volume of 490,405. The company has a market cap of $1.43 billion, a price-to-earnings ratio of -3.32, a PEG ratio of 1.19 and a beta of 1.40. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.15 and a quick ratio of 1.00. The company's fifty day simple moving average is $28.20 and its two-hundred day simple moving average is $27.54. World Kinect has a 1-year low of $22.70 and a 1-year high of $31.70.

World Kinect Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 16th. Shareholders of record on Tuesday, June 17th were given a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, June 17th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.2%. This is a boost from World Kinect's previous quarterly dividend of $0.17. World Kinect's payout ratio is currently 333.33%.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on WKC. Raymond James Financial reaffirmed an "outperform" rating and set a $33.00 target price (down from $35.00) on shares of World Kinect in a research note on Friday. Bank of America dropped their price target on shares of World Kinect from $27.00 to $26.00 and set an "underperform" rating for the company in a research note on Friday, April 25th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $29.80.

Institutional Investors Weigh In On World Kinect

Several institutional investors have recently added to or reduced their stakes in the business. Millennium Management LLC increased its stake in World Kinect by 3.3% in the first quarter. Millennium Management LLC now owns 525,697 shares of the company's stock valued at $14,909,000 after purchasing an additional 16,738 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of World Kinect by 18.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 220,791 shares of the company's stock valued at $6,262,000 after buying an additional 34,807 shares in the last quarter. AQR Capital Management LLC grew its position in shares of World Kinect by 16.5% in the 1st quarter. AQR Capital Management LLC now owns 119,198 shares of the company's stock valued at $3,380,000 after buying an additional 16,874 shares during the last quarter. Royal Bank of Canada grew its position in shares of World Kinect by 2.2% in the 1st quarter. Royal Bank of Canada now owns 68,228 shares of the company's stock valued at $1,934,000 after buying an additional 1,481 shares during the last quarter. Finally, Intech Investment Management LLC raised its stake in World Kinect by 95.5% during the 1st quarter. Intech Investment Management LLC now owns 47,437 shares of the company's stock worth $1,345,000 after acquiring an additional 23,176 shares in the last quarter. Hedge funds and other institutional investors own 97.06% of the company's stock.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform.

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