Kinder Morgan stock has rebounded this month, moving from a low of $29.48 on October 1 to the current $33.43. It has jumped to its highest level since May 20th, with focus now shifting to its upcoming earnings report. It is up by over 30% from its lowest level this year.
Kinder Morgan to publish its earnings
Kinder Morgan is a leading energy infrastructure company. It does not produce oil and gas. Instead, it uses its extensive pipeline network to transport energy to its clients. Most of its business is in natural gas, which is seeing strong growth. The US-Iran war has boosted demand for US gas from Asian and European countries, while the ongoing data center boom has driven a surge in domestic gas demand.
Kinder Morgan’s business has done well this year, with its revenue and profits soaring. The most recent results showed that revenue jumped to $4.47 billion in the June quarter from $4.04 billion in the same period last year. As a result, its net income rose to $894 million from the previous $742 million.
For the first half of the year, Kinder Morgan’s revenue and profits rose to $9.3 billion and $1.8 billion, respectively. As a result, the board of directors decided to boost its dividends to its shareholders.
Focus today will be on its earnings report, which will provide more information about the impact of a recent outage to Mexico. Yahoo Finance data shows that analysts expect the upcoming report to show that revenue rose 5.72% to $4.38 billion, with its earnings per share rising to 33 cents.
Options market suggests mild movement after earnings
The options market expects a muted reaction to earnings. This is in line with how it has reacted to its earnings in the past. For example, its stock dropped by less than 1% after releasing its earnings report. It also dropped by less than 2% after its previous earnings report in April.
The company has an implied volatility of 24%, slightly higher than the historical average of 19%. It has a put-to-call ratio of 0.15, suggesting bullish positioning, with most of the calls sitting at $34, slightly higher than the current $33.
Analysts are modestly bullish on KMI stock. Royal Bank of Canada has a target of $36, while Melius Research targets $38. JPMorgan and Argus have a target of $36 and $38, respectively.
Kinder Morgan stock technical analysis
KMI stock chart | Source: TradingView
The daily chart shows that Kinder Morgan shares have bounced back in the past few days, moving from a low of $29.48 on October 1 to the current $33.43. It has crossed the important resistance level of $33, its highest level in June, July, and August this year.
The stock has jumped above the 100-day moving average and the ultimate resistance of the Murrey Math Lines tool. Top oscillators like the Relative Strength Index (RSI) and the MACD have continued rising.
Therefore, the stock will likely have a bullish breakout, potentially to the crucial resistance level of $34.47, its highest point in March this year. A surge above that level will point to more gains, potentially to $40.
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