NEW YORK (TheStreet) -- Kinder Morgan (KMI) - Get Report shares are rising 1.82% to $24.10 on Tuesday as oil prices got a boost following the news that Turkish warplanes shot down a Russian aircraft near the Syrian border.
Officials said the Russian warplane violated Turkey's airspace and that the aircraft was warned 10 times in five minutes before being fired upon, the Wall Street Journal reports.
This is the first time since the 1950s that a NATO member's military has shot down a Russian or Soviet military aircraft, Reuters reports.
Following this incident, oil prices shot up as investors were concerned that output in the Middle East could be affected by geopolitical risks, the Wall Street Journal added.
Crude oil (WTI) is jumping 3.52% to $43.22 per barrel and Brent crude is hiking 3.06% to $46.20 per barrel, according to the CNBC.com index.
Houston-based Kinder Morgan operates as an energy infrastructure and energy company in North America.
Separately, TheStreet Ratings team rates KINDER MORGAN INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate KINDER MORGAN INC (KMI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and generally higher debt management risk.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 46.56% is the gross profit margin for KINDER MORGAN INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.01% is above that of the industry average.
- Despite the weak revenue results, KMI has outperformed against the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 13.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.21%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.00% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- KINDER MORGAN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, KINDER MORGAN INC reported lower earnings of $0.95 versus $1.15 in the prior year. For the next year, the market is expecting a contraction of 20.0% in earnings ($0.76 versus $0.95).
- You can view the full analysis from the report here: KMI