Why Kodiak Gas Services stock didn’t catch fire this week

Kodiak Gas Services (KGS 2.77%) he didn’t exactly have a week for the ages at the stock market. The company’s shares fell following a quarterly earnings report that many investors found discouraging. As of early Friday morning, the specialty equipment company’s stock has lost nearly 9% of its value year to date, according to data compiled by S&P Global Market Intelligence.

Second quarter headline results traveled in opposite directions

Kodiak’s second quarter had quite a split personality. Revenue was up 52% ​​year-over-year to nearly $310 million. However, net income struggled in the opposite direction, falling 62% to $6.7 million ($0.06 per share) on a GAAP basis.

While the top-line figure was well above the average analyst estimate of $223 million, that net income fell short of the consensus estimate of $0.34 per share.

In its earnings release, Kodiak chose to focus on the quarter’s more positive developments. CEO Mickey Mckee said: “We are pleased with our second quarter 2024 results as we completed the acquisition of CSI Compressco to form the largest contract compression fleet in the industry and delivered record revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). .”

Adjusted EBITDA guidance for 2024

Speaking of EBITDA, Kodiak is looking for better times ahead for that financial measure. It slightly raised its full-year guidance for non-GAAP (adjusted) EBITDA; it is now expected to post $590 million to $610 million for the full year 2024. Previously, the range was wider, from $580 million to $610 million.