Kinetik Holdings Inc. (KNTK) stock plummeted 5.78% in after-hours trading on Wednesday, following the company's earnings report for the fiscal year 2024. Despite beating revenue expectations, Kinetik missed analyst estimates for earnings per share (EPS), a disappointment that led investors to sell off the stock in the after-hours session.
Kinetik reported quarterly earnings of $1.02 per share, significantly lower than the analyst consensus estimate of $1.44 per share, missing expectations by 29.17%. However, the company's quarterly sales of $1.482 billion surpassed the analyst consensus estimate of $1.377 billion by 7.59%.
The earnings miss appears to have overshadowed Kinetik's better-than-expected revenue performance, leading to the sharp decline in the stock's price. Investors often place a high emphasis on a company's ability to meet or exceed earnings expectations, as it is seen as a key indicator of profitability and growth potential.
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