Kinetik Holdings Inc. (KNTK) Misses Q3 Earnings Estimates

Core Insights - Kinetik Holdings Inc. (KNTK) reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.52 per share, but showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of -32.69% [1] - The company achieved revenues of $396.36 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 10.08% and up from $330.3 million year-over-year [2] - Kinetik Holdings has outperformed the S&P 500 with a stock price increase of approximately 49.7% since the beginning of the year, compared to the S&P 500's gain of 21.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $541.63 million, and for the current fiscal year, it is $1.44 on revenues of $1.6 billion [7] - The estimate revisions trend for Kinetik Holdings is favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Oil and Gas - Field Services industry, to which Kinetik Holdings belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges in overall industry performance [8] - Another company in the same industry, Archrock Inc. (AROC), is expected to report quarterly earnings of $0.28 per share, reflecting a year-over-year increase of 40%, with revenues projected at $292.95 million, up 15.6% from the previous year [9][10]