Knife River Corporation Just Missed EPS By 6.9%: Here's What Analysts Think Will Happen Next

As you might know, Knife River Corporation (NYSE:KNF) recently reported its quarterly numbers. Revenues of US$1.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.60, missing estimates by 6.9%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Knife River

Taking into account the latest results, the current consensus from Knife River's eight analysts is for revenues of US$3.05b in 2025. This would reflect a satisfactory 5.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to US$4.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.05b and earnings per share (EPS) of US$4.27 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.0% to US$110, suggesting that these impacts are not expected to weigh on the stock's value in the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Knife River at US$125 per share, while the most bearish prices it at US$98.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Knife River's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Knife River's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 9.5% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Knife River is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Knife River's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Knife River. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Knife River going out to 2026, and you can see them free on our platform here..

You can also see whether Knife River is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.