uploads///kmis net income vs estimates

Kinder Morgan’s 1Q17 Net Income Is Expected to Fall Marginally

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Apr. 12 2017, Published 10:56 a.m. ET

Estimated 1Q17 net income

Kinder Morgan (KMI) is expected to report its 1Q17 earnings on April 19, 2017. Analysts expect a 1.5% fall in Kinder Morgan’s 1Q17 net income to $404 million from $410 million in 4Q16—a 1% fall from Kinder Morgan’s 1Q16 net income.

The above graph compares Kinder Morgan’s net income estimates with its adjusted net income over the last ten quarters. As the graph shows, Kinder Morgan missed net income estimates in five out of the last nine quarters.

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Year-to-date performance

Kinder Morgan rose 4% YTD (year-to-date). In comparison, Plains All American Pipeline (PAA) fell 4% and the Energy Select Sector SPDR ETF (XLE) fell 7% YTD. ONEOK (OKE) fell 2% during the same period.

The Alerian MLP ETF (AMLP), an ETF of the top infrastructure MLPs, has risen nearly 1.4% YTD. The SPDR S&P 500 ETF (SPY) (SPX-INDEX) has risen nearly 5%. The energy sector forms nearly 6.6% of SPY. So far, Kinder Morgan stock has outperformed its peers this year.

Dividends

Kinder Morgan announced a cash dividend of $0.13 per share for 4Q16—unchanged from the previous quarter. The company expects to declare dividends of $0.50 per share for 2017. So, investors don’t expect a dividend increase this quarter.

Enterprise Products Partners (EPD) announced a 1.2% increase in its 1Q17 per unit distribution over the previous quarter. Antero Midstream Partners (AM) announced a 7.1% quarter-over-quarter increase in its 1Q17 distributions.

Analysts expect Kinder Morgan’s earnings per share to remain flat for 1Q17.

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