Kirby(KEX) ZACKS·2025-03-05 21:00Core Viewpoint - Kirby Corporation (KEX) has shown strong stock performance, outperforming the transportation shipping industry and other competitors over the past year [1][3]. Group 1: Stock Performance - KEX shares have improved in double digits over the past year, indicating strong market performance [1]. - The stock's price performance is favorable compared to industry peers like Star Bulk Carriers Corp. (SBLK) and FLEX LNG Ltd. (FLNG) [1]. Group 2: Financial Performance - Revenues for 2024 increased by 11% year over year, while operating income improved by 52% year over year [4]. - For 2025, inland revenues are expected to grow in the mid to high single-digit range, with barge utilization rates projected to be in the low to mid-90% range [4]. - Coastal marine revenues for 2025 are anticipated to increase in the high-single to low-double digit range due to higher contract pricing [5]. - Kirby generated 540.2 million in 2023 and 174.6 million in 2024 and an additional 0.2 million shares for $26.0 million in early 2025 [8][9]. - As of February 17, 2025, Kirby had nearly 2.6 million shares available under existing purchase authorizations, which can enhance earnings per share and signal management's confidence in the stock [9]. Group 4: Valuation - KEX is trading at a discount compared to the industry based on its forward 12-month price-to-sales ratio, with a Value Score of B [10]. Group 5: Segment Performance - The Distribution and Services segment has faced challenges, with revenues decreasing by 1% year over year in 2024 and operating income down by 5% [11]. - The commercial and industrial markets, which contribute significantly to this segment, are experiencing lower business levels due to ongoing economic conditions [12]. Group 6: Cost Pressures - Total costs and expenses rose by 3.9% year over year in 2024, following increases of 6.3% in 2023 and 3.5% in 2022, which puts pressure on margins [13].