NEW YORK (TheStreet) -- Shares of Kinder Morgan (KMI) - Get Kinder Morgan Inc (KMI) Report are slipping, down 1.87% to $40.15 in midday trading Thursday, after analysts at BMO Capital Markets lowered its annual earnings projections for 2015 and 2016 this morning, following the largest U.S. energy infrastructure company's analyst conference yesterday.
The firm cut its earnings estimate for 2015 to 83 cents per share, down from $1.05 per share.
For 2016, BMO Capital now sees earnings of 90 cents per share, down from its previous estimate of $1.05 per share.
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BMO Capital maintained its "outperform" rating with a $47 price target.
Houston, TX-based Kinder Morgan owns and manages a diversified portfolio of energy transportation and storage assets, with an interest in approximately 37,000 miles of pipelines and 180 terminals.
Separately, TheStreet Ratings team rates KINDER MORGAN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KINDER MORGAN INC (KMI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- KMI's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 44.29% 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. Regardless of the strong results of the gross profit margin, the net profit margin of 3.18% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- 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. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, KINDER MORGAN INC reported lower earnings of $0.95 versus $1.15 in the prior year. This year, the market expects an improvement in earnings ($1.27 versus $0.95).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 62.7% when compared to the same quarter one year ago, falling from $338.00 million to $126.00 million.
- You can view the full analysis from the report here: KMI Ratings Report