Kirby Corporation (reported better-than-expected second-quarter 2022 earnings and revenue performance. KEX Quick Quote KEX - Free Report)
Quarterly earnings of 49 cents per share outpaced the Zacks Consensus Estimate by a penny and improved more than 100% year over year. Total revenues of $698 million outperformed the Zacks Consensus Estimate of $664.5 million and improved 24.7% year over year. The upside was driven by higher revenues at the marine transportation; and distribution and services segments. Total costs and expenses (on a reported basis) escalated 21.6% year over year to $651.43 million.
The company operates via two segments, namely, marine transportation; and distribution and services.
In the first quarter, revenues in the marine transportation unit increased 21.9% year over year to $405.7 million. Segmental operating income jumped to $30.8 million in the reported quarter compared with $18.5 million in the year-ago period. Operating margin improved to 7.6% compared with 5.6% in the year-ago period.
Inland market revenues accounted for 78% of the segmental revenues. Revenues in the inland market grew 25% year over year owing to increased volumes, barge utilization, pricing, and fuel rebills. Operating margin for the inland business was below double digits. The metric was hurt by rising fuel costs.
Revenues in the coastal market accounted for 22% of the segmental revenues. The coastal market recorded a positive operating margin in the low-single digits during the quarter. Average barge utilization in the June quarter was in the low-90% range.
In the distribution and services segment, revenues rose 28.9% to $292.3 million. Segmental operating income jumped to $16.7 million in the reported quarter compared with $6.2 million in the year-ago period. Moreover, the segment reported an operating margin of 5.7% in the second quarter of 2022 compared with 2.7% in the second quarter of 2021.
The oil and gas sub-group, which accounted for 45% of the segmental revenues during the reported quarter, benefited from higher oilfield activity which resulted in increased demand for new transmissions and parts in the distribution business. The segment had an operating margin in the low to mid-single digits.
The commercial and industrial sub-group, which accounted for 55% of the segmental revenues, benefited from strong economic activity across the U.S., which resulted in higher business levels in marine repair and on-highway. Operating margin at the commercial and industrial sub-group was in the high-single digits.
Balance Sheet Highlights
As of Jun 30, 2022, Kirby had cash and cash equivalents of $25.1 million compared with $32.4 million at the end of 2021. Total debt was $1,136.1 million at the end of second quarter compared with $1,154.7 million at the end of March 2022.
Currently, Kirby carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . Performance of Other Transportation Companies Delta AirLines’ ( DAL Quick Quote DAL - Free Report) second-quarter 2022 earnings (excluding 29 cents from non-recurring items) of $1.44 per share fell short of the Zacks Consensus Estimate of $1.71. Escalated operating expenses induced the earnings miss. Multiple flight cancellations in May and June also hurt results. The earnings miss disappointed investors, resulting in the stock shedding value in early trading. In the year-ago quarter, Delta incurred a loss of $1.07 per share when air-travel demand was not as buoyant as in the current scenario.
DAL’s revenues came in at $13,824 million, which not only beat the Zacks Consensus Estimate of $13,608.9 million and soared 94% from the year-ago quarter’s figure as air-travel demand rebounded from the pandemic lows. The uptick in air-travel demand in the United States can be gauged from the fact that 75.9% of second-quarter 2022 passenger revenues came from the domestic markets.
J.B. Hunt Transport Services, Inc. ( JBHT Quick Quote JBHT - Free Report) reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.
JBHT’squarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.
JBHT’stotal operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.
CSX Corporation () reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. CSX Quick Quote CSX - Free Report)
CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.
CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge, and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.