Core Insights - World Kinect (WKC) reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and showing an increase from $0.54 per share a year ago, resulting in an earnings surprise of 19.23% [1] - The company posted revenues of $9.76 billion for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 5.38% and decreased from $12 billion year-over-year [2] - World Kinect has underperformed the market, with shares down about 0.9% since the beginning of the year compared to the S&P 500's gain of 4.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $11.24 billion, and for the current fiscal year, it is $2.56 on revenues of $46.08 billion [7] - The estimate revisions trend for World Kinect is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Alternative Energy - Other industry, to which World Kinect belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Q4 2024 Earnings Call February 20, 2025 www.world-kinect.com Copyright © 2025 World Kinect Corporation. All rights reserved. Disclaimer and Cautionary Note Regarding Forward-Looking Statements Certain statements, including comments about World Kinect Corporation's expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that could cause World Kinect's actual results to materially differ from the forward-looking in ...

Financial Performance - Gross profit for Q4 2024 was $259 million, an 11% increase year-over-year[4] - GAAP net loss for Q4 2024 was $102 million, or $1.77 per diluted share, compared to a loss of $35 million in Q4 2023[6] - Adjusted net income for Q4 2024 was $36 million, or $0.62 per diluted share, a 15% increase from $0.54 per diluted share in Q4 2023[6] - Full year 2024 revenue decreased by 12% to $42.168 billion from $47.711 billion in 2023[6] - Adjusted EBITDA for Q4 2024 was $95 million, a 5% decrease from $100 million in Q4 2023[6] - Gross profit for the year ended December 31, 2024, was $1,026.4 million, down from $1,058.2 million in 2023, reflecting a gross margin of 2.4%[22] - Net loss attributable to World Kinect for the year ended December 31, 2024, was $67.4 million, compared to a net income of $52.9 million in 2023[22] - Basic earnings per share for the year ended December 31, 2024, was $(1.14), a decline from $0.86 in 2023[22] - Total revenue for Q4 2024 was $9,760.5 million, a decrease of 18.5% from $12,002.9 million in Q4 2023[27] - The total income from operations for the year ended December 31, 2024, was $210.6 million, compared to $198.0 million in 2023, reflecting a 6.6% increase[27] Cash Flow and Liquidity - Operating cash flow generated in 2024 was $260 million, with $139 million returned to shareholders through dividends and share repurchases, reflecting a 47% year-over-year increase[7] - Free cash flow for 2024 was $192 million, indicating strong cash generation capabilities[7] - Cash and cash equivalents increased to $382.9 million as of December 31, 2024, from $304.3 million in 2023, an increase of 25.8%[20] - The company reported a net cash provided by operating activities of $120.3 million for Q4 2024, compared to $4.5 million in Q4 2023[24] - Free cash flow for the three months ended December 31, 2024, was $102.4 million, significantly improved from $(15.2) million in the same period of 2023[35] Segment Performance - Gross profit in the Land segment increased by 83% year-over-year, primarily due to a non-recurring item in Q4 2023[4] - The Aviation segment reported a gross profit of $120 million, an 8% decrease year-over-year[4] - The Aviation segment reported revenue of $4,737.8 million in Q4 2024, down 19.3% from $5,874.3 million in Q4 2023[27] - The Land segment's revenue decreased to $2,951.1 million in Q4 2024, down 19.6% from $3,672.8 million in Q4 2023[27] - The Marine segment's revenue decreased to $2,071.7 million in Q4 2024, down 15.6% from $2,455.8 million in Q4 2023[27] Assets and Liabilities - Total current assets decreased to $3,959.2 million as of December 31, 2024, from $4,503.8 million in 2023, a reduction of 12.1%[20] - Total liabilities decreased to $4,775.8 million as of December 31, 2024, from $5,425.7 million in 2023, a decline of 11.9%[20] - Retained earnings increased to $2,009.2 million as of December 31, 2024, compared to $1,981.6 million in 2023, an increase of 1.4%[20] - Total equity for World Kinect increased slightly to $1,955.9 million as of December 31, 2024, from $1,949.6 million in 2023[20] Other Financial Metrics - The company recorded a one-time, non-cash pre-tax loss of approximately $111 million due to the sale of its Brazil subsidiaries[4] - Comprehensive income for the year ended December 31, 2024, was $(51.7) million, compared to $(13.2) million in 2023, indicating a significant decline[22] - The company experienced a significant unrealized loss on derivatives of $7.1 million in Q4 2024, compared to a loss of $75.8 million in Q4 2023[24] - The total depreciation and amortization expense for the year ended December 31, 2024, was $106.4 million, compared to $104.5 million in 2023[33] - Interest expense and other financing costs for the year ended December 31, 2024, totaled $102.2 million, down from $127.7 million in 2023[33] Strategic Initiatives - The company expects to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[34]

Core Insights - World Kinect (WKC) is expected to report quarterly earnings of $0.55 per share, reflecting a 1.9% increase year-over-year, while revenues are forecasted to decline by 12% to $10.56 billion [1] - The consensus EPS estimate has been revised upward by 13.8% in the last 30 days, indicating a reassessment by analysts [2] - Analysts emphasize the importance of earnings estimate revisions in predicting investor reactions and stock price performance [3] Revenue Estimates - Revenue from Aviation is projected to be $4.89 billion, down 16.8% from the previous year [5] - Revenue from Land is expected to reach $3.25 billion, reflecting an 11.4% decrease year-over-year [5] - Revenue from Marine is forecasted at $2.11 billion, indicating a 13.9% decline compared to the same quarter last year [5] Volume Estimates - The consensus estimate for Aviation volume is 1,858.18 million gallons, up from 1,784 million gallons year-over-year [6] - Land volume is expected to be 1,537.39 million gallons, down from 1,619.3 million gallons in the previous year [6] - Marine volume is projected at 1,054.66 million gallons, a decrease from 1,129.7 million gallons reported last year [6] Income Estimates - Estimated income from operations for Aviation is $60.70 million, slightly up from $58.10 million in the same quarter last year [7] - Projected income from operations for Marine is $18.08 million, down from $19.30 million year-over-year [7] Stock Performance - World Kinect shares have decreased by 2.6% over the past month, contrasting with a 4.7% increase in the Zacks S&P 500 composite [8] - With a Zacks Rank of 2 (Buy), WKC is anticipated to outperform the overall market in the near term [8]

Core Insights - The article compares World Kinect (WKC) and Ormat Technologies (ORA) to determine which stock is more attractive to value investors [1][3] Valuation Metrics - WKC has a forward P/E ratio of 11.16, while ORA has a forward P/E of 29.71, indicating WKC is potentially undervalued [5] - WKC's PEG ratio is 0.92, suggesting a favorable valuation relative to its expected earnings growth, whereas ORA's PEG ratio is 2.97 [5] - WKC has a P/B ratio of 0.80, compared to ORA's P/B of 1.53, further supporting WKC's valuation attractiveness [6] Earnings Outlook - WKC is noted for having an improving earnings outlook, which enhances its appeal in the Zacks Rank model [7]

Core Insights - The article compares World Kinect (WKC) and TC Energy (TRP) to determine which stock offers better value for investors [1] - A strong Zacks Rank combined with a good Value grade is highlighted as an effective strategy for identifying value stocks [2] Valuation Metrics - WKC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while TRP has a Zacks Rank of 3 (Hold) [3] - WKC's forward P/E ratio is 11.53, significantly lower than TRP's forward P/E of 17.95 [5] - WKC's PEG ratio is 0.95, compared to TRP's PEG ratio of 4.49, suggesting WKC is more favorably valued in terms of expected earnings growth [5] - WKC's P/B ratio is 0.81, while TRP's P/B ratio is 1.77, indicating WKC is undervalued relative to its book value [6] - These metrics contribute to WKC receiving a Value grade of A, whereas TRP has a Value grade of C [6] Conclusion - WKC exhibits stronger estimate revision activity and more attractive valuation metrics than TRP, making it the preferred choice for value investors at this time [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach may involve investing in bargain stocks that have recently shown price momentum [2] Group 2: World Kinect (WKC) Stock Analysis - World Kinect (WKC) has a four-week price change of 3.8%, indicating growing investor interest [3] - WKC gained 6.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.28, suggesting it moves 28% higher than the market in either direction [4] Group 3: Valuation and Earnings Estimates - WKC has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - WKC is trading at a Price-to-Sales ratio of 0.04, meaning investors pay only 4 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Investment Opportunities - Besides WKC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [8]

World Kinect (WKC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ | --- | --- | --- | |-------------------------------------------------------|----------------------------------------------------- ...

Financial Data and Key Metrics Changes - Total volume decreased slightly year-over-year to $4.4 billion, with consolidated gross profit declining 5% to $268 million, primarily due to lower gross profit in the Land segment [12][11] - Operating cash flow was negative $39 million, attributed to increased capital requirements associated with seasonal business activity [19] - Interest expense decreased by 16% year-over-year to $24 million, with expectations for further decline in the fourth quarter [18] Business Line Data and Key Metrics Changes - Aviation segment gross profit increased by 3% year-over-year to $3 million, despite a 1% decrease in volume [13] - Marine business generated an 8% year-over-year increase in gross profit, with operating margin improving by 450 basis points [7] - Land segment volumes decreased by 3% year-over-year, with a 16% decline in gross profit, although there was a 26% sequential increase in gross profit [14][15] Market Data and Key Metrics Changes - Natural gas and power represented 33% of volume in Q3, flat with Q2 and up from 31% in Q3 2023 [14] - The North American fuel business showed improvement, contributing to better outcomes compared to the previous quarter [28] Company Strategy and Development Direction - The company is focused on implementing a more leverageable business model and capital allocation strategy that prioritizes predictable returns [5] - There is a clear path to improving operating efficiency and margins in the Land business through consolidation and standardization [9] - The company aims to achieve medium-term operating margin targets by refining and optimizing its portfolio of activities [15][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while some market headwinds persisted, the Land segment rebounded significantly from the previous quarter [4] - The company remains optimistic about improving Land results in the fourth quarter and beyond, with expectations for year-over-year gross profit to be flat to slightly up [15] - Management emphasized the importance of the aviation segment in decarbonizing the industry and highlighted the strategic significance of sustainable aviation fuel (SAF) [35][38] Other Important Information - The company repurchased $28 million of shares in the third quarter, increasing total year-to-date repurchases to $57 million [19] - The company announced a $200 million increase to its share repurchase authorization [19] Q&A Session Summary Question: Are there other pieces of the business that could be monetized like Avinode? - Management indicated that while Avinode was an outlier, there are opportunities to refine other parts of the business and reallocate capital into core activities [23][24] Question: Are there more acquisition opportunities due to the freight recession? - Management noted that there are greater opportunities for inorganic growth as interest rates decline, making more sellers available [25][26] Question: What factors impacted the Land business performance? - Management explained that while some areas improved, challenges in Brazil and specific North American markets continued to affect performance [28] Question: How will the company achieve the 30% operating margin target in Land? - Management highlighted that both market normalization and controllable strategic moves will be crucial in reaching this target [30][31] Question: What was the gross profit contribution from low carbon initiatives in Q3? - Management reported that low carbon initiatives contributed 11% to gross profit in the most recent quarter [34] Question: How is the company positioned in the natural gas market, particularly with data centers? - Management confirmed engagement with data center operators, indicating a growing demand for energy consumption [36]