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Kirby (KEX) Touches 52-Week High: What's Driving the Stock?
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Shares of Kirby Corporation (KEX - Free Report) scaled a 52-week high of $85.05 in the trading session on Sep 07, 2023, before closing a tad lower at $83.59.
The company’s shares gained 27.6% so far this year compared with the 6.8% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s find out the factors supporting the uptick.
Kirby’s strong cash flow generating ability looks encouraging. During the first half of 2023, Kirby generated $227.9 million of cash from operating activities, higher than $95.6 million in the year-ago period. For 2023, KEX has raised its guidance for net cash generated from operating activities between $500 million and $580 million, higher than the prior view of $480-$580 million.
Strong segmental performances are boosting Kirby’s top line. The distribution and services segment is benefiting from increased demand for products and services. Improved performance in the oil and gas, as well as commercial and industrial markets, are driving segmental revenues. In the second quarter of 2023, revenues in the segment rose 19.8% to $350.3 million. Segmental operating income amounted to $29.8 million compared with $16.7 million reported in the year-ago period.
Favorable market conditions, such as high refinery and petrochemical plant utilization, and increased volumes from new petrochemical plants in inland marine (within the marine transportation unit), are expected to boost performance of the marine transportation unit. In the second quarter of 2023, revenues in the marine transportation unit increased 5.3% year over year to $427 million. Segmental operating income jumped to $64.3 million in the second quarter of 2023 compared with $30.8 million reported in the year-ago period.
GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 17.30%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 6% year to date.
SkyWest's fleet-modernization efforts are commendable.A fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a decline in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 163.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.
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Kirby (KEX) Touches 52-Week High: What's Driving the Stock?
Shares of Kirby Corporation (KEX - Free Report) scaled a 52-week high of $85.05 in the trading session on Sep 07, 2023, before closing a tad lower at $83.59.
The company’s shares gained 27.6% so far this year compared with the 6.8% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s find out the factors supporting the uptick.
Kirby’s strong cash flow generating ability looks encouraging. During the first half of 2023, Kirby generated $227.9 million of cash from operating activities, higher than $95.6 million in the year-ago period. For 2023, KEX has raised its guidance for net cash generated from operating activities between $500 million and $580 million, higher than the prior view of $480-$580 million.
Strong segmental performances are boosting Kirby’s top line. The distribution and services segment is benefiting from increased demand for products and services. Improved performance in the oil and gas, as well as commercial and industrial markets, are driving segmental revenues. In the second quarter of 2023, revenues in the segment rose 19.8% to $350.3 million. Segmental operating income amounted to $29.8 million compared with $16.7 million reported in the year-ago period.
Favorable market conditions, such as high refinery and petrochemical plant utilization, and increased volumes from new petrochemical plants in inland marine (within the marine transportation unit), are expected to boost performance of the marine transportation unit. In the second quarter of 2023, revenues in the marine transportation unit increased 5.3% year over year to $427 million. Segmental operating income jumped to $64.3 million in the second quarter of 2023 compared with $30.8 million reported in the year-ago period.
Zacks Rank and Other Stocks to Consider
Currently, Kirby carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and SkyWest, Inc. (SKYW - Free Report) . Each of these companies presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 17.30%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 6% year to date.
SkyWest's fleet-modernization efforts are commendable.A fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a decline in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 163.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.