World Kinect (NYSE:WKC) Issues Earnings Results

World Kinect (NYSE:WKC) posted its quarterly earnings data on Thursday. The company reported $0.99 EPS for the quarter, topping the consensus estimate of $0.96 by $0.03, FiscalAI reports. World Kinect had a positive return on equity of 11.24% and a negative net margin of 0.43%. The firm had revenue of $13.27 billion during the quarter, compared to analyst estimates of $12.34 billion. During the same period in the prior year, the business posted $0.54 EPS. World Kinect’s revenue was up 41.3% on a year-over-year basis.

Here are the key takeaways from World Kinect’s conference call:

• Record third-quarter results included adjusted EPS of $0.99, up 83% year over year, and adjusted gross profit of $279 million, up 12%. The company raised full-year adjusted EPS guidance to $3.52–$3.62 from $3.20–$3.40.
• Marine gross profit surged 131% year over year to $59 million, while aviation gross profit increased 4% to $148 million. Land adjusted operating income more than doubled to $28 million, reflecting portfolio simplification and strong performance in retail and cardlock.
• The company generated $175 million of operating cash flow and $164 million of free cash flow in the quarter, aided by improved working-capital discipline. Management said stronger cash conversion increases flexibility to invest, pursue opportunities, and return capital to shareholders.
• Management expects marine gross profit and land adjusted operating income to decline sequentially in the fourth quarter as market-related benefits and favorable volatility moderate, while aviation is expected to be broadly flat sequentially. Higher interest expense and elevated rates also remain headwinds, and management cautioned that third-quarter working-capital benefits may not be repeated.

World Kinect Price Performance

NYSE:WKC opened at $37.23 on Friday. The company has a current ratio of 1.06, a quick ratio of 0.91 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $1.90 billion, a P/E ratio of -11.60, a P/E/G ratio of 0.56 and a beta of 1.21. World Kinect has a 12 month low of $22.21 and a 12 month high of $41.20. The business’s 50-day moving average is $35.92 and its 200 day moving average is $30.73.

World Kinect Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Monday, September 28th were issued a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, September 28th. World Kinect’s payout ratio is -28.66%.

Insider Buying and Selling

In other news, EVP Jose-Miguel Tejada sold 6,000 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $37.16, for a total transaction of $222,960.00. Following the completion of the transaction, the executive vice president directly owned 35,676 shares in the company, valued at approximately $1,325,720.16. This represents a 14.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Michael Kasbar sold 10,000 shares of the firm’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $35.67, for a total transaction of $356,700.00. Following the completion of the transaction, the chairman directly owned 956,450 shares of the company’s stock, valued at approximately $34,116,571.50. This trade represents a 1.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 36,000 shares of company stock worth $1,327,760. Corporate insiders own 3.80% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on WKC. Weiss Ratings reaffirmed a “sell (d)” rating on shares of World Kinect in a research report on Monday. Zacks Research cut shares of World Kinect from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Morgan Stanley set a $30.00 price target on shares of World Kinect in a report on Wednesday, July 29th. Finally, Wall Street Zen downgraded shares of World Kinect from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 10th. One research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, World Kinect has an average rating of “Sell” and a consensus target price of $30.00.

About World Kinect

World Kinect Corporation (NYSE:WKC) is an energy management company that supplies, distributes and manages fuel and other energy products for commercial customers around the world. The company serves the aviation, marine and land transportation sectors, as well as commercial, industrial and government customers.

Its offerings include conventional and renewable fuels, natural gas, electricity, lubricants, fuel-management services and related environmental solutions. World Kinect also provides procurement, logistics, payment-processing and transaction-management services designed to help customers manage energy supply, costs and operational requirements.

The company was founded as World Fuel Services in 1985 and adopted the World Kinect name in 2024.