Kodiak Gas Services (NYSE:KGS) released its quarterly earnings results on February 20, 2024, reporting earnings per share (EPS) of $0.40. This figure fell short of analysts’ expectations, which had forecasted an EPS of $0.53, resulting in a miss of $0.13. According to Zacks, the company’s return on equity stood at 10.37%, while its net margin was recorded at 5.84%.
In terms of revenue, Kodiak Gas Services generated $332.87 million during the quarter, slightly exceeding the anticipated $330.95 million. This marks a significant increase of 7.6% compared to the same quarter last year, when the company reported an EPS of $0.21.
Stock Performance and Financial Ratios
Following the earnings announcement, Kodiak Gas Services’ stock experienced an uptick, trading at $54.28, an increase of $1.53 during Thursday’s trading session. The trading volume reached 1,158,430 shares, which is lower than the average volume of 1,601,952 shares. The company has a quick ratio of 0.69, a current ratio of 0.98, and a debt-to-equity ratio of 2.08. Kodiak’s market capitalization is currently $4.71 billion, with a price-to-earnings (P/E) ratio of 67.86 and a beta of 1.31. The stock has fluctuated significantly, with a one-year low of $29.25 and a high of $55.00.
Dividend Announcement and Institutional Trading
On the same day, Kodiak Gas Services announced a quarterly dividend of $0.49 per share, which was paid to stockholders of record on February 13, 2024. This dividend represents an annualized amount of $1.96 and yields 3.6%. The company’s dividend payout ratio stands at an unusually high 245.00%, highlighting a significant commitment to returning value to shareholders despite recent earnings challenges.
In terms of institutional trading, several investors have adjusted their positions in Kodiak Gas Services. Notably, Invesco Ltd. increased its stake by 20.4% in the fourth quarter, now owning 7,593,274 shares valued at approximately $283.99 million. Similarly, Zimmer Partners LP raised its holdings by 45.7%, owning 4,271,553 shares worth around $159.76 million. Other notable investors include State Street Corp and Dimensional Fund Advisors LP, which have also boosted their stakes significantly.
Kodiak Gas Services operates in the oil and gas sector, providing contract compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The company operates in two segments: Compression Operations and Other Services, which includes construction and maintenance services.
The recent earnings report and subsequent market reactions reflect a complex landscape for Kodiak Gas Services, balancing strong revenue growth against disappointing EPS figures. Investors will be watching closely as the company navigates these challenges and seeks to enhance shareholder value in the coming quarters.
