Kodiak Gas Services, Inc. Just Missed Earnings; Here's What Analysts Are Forecasting Now

Shareholders of Kodiak Gas Services, Inc. (NYSE:KGS) will be pleased this week, given that the stock price is up 12% to US$34.83 following its latest quarterly results. Revenues of US$325m beat expectations by 2.5%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of US$0.07 compared to previous analyst expectations of a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Kodiak Gas Services

Following the latest results, Kodiak Gas Services' eight analysts are now forecasting revenues of US$1.35b in 2025. This would be a substantial 25% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 606% to US$1.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.34b and earnings per share (EPS) of US$1.73 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$33.60, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kodiak Gas Services analyst has a price target of US$36.00 per share, while the most pessimistic values it at US$31.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 20% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.5% annually. So although Kodiak Gas Services is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kodiak Gas Services' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$33.60, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Kodiak Gas Services going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 5 warning signs for Kodiak Gas Services (2 make us uncomfortable!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.