Knife River Corporation (NYSE:KNF) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of US$2.9b and statutory earnings per share of US$3.55 both in line with analyst estimates, showing that Knife River is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Knife River NYSE:KNF Earnings and Revenue Growth February 15th 2025

Taking into account the latest results, the most recent consensus for Knife River from nine analysts is for revenues of US$3.07b in 2025. If met, it would imply a credible 6.0% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 13% to US$4.04. Before this earnings report, the analysts had been forecasting revenues of US$3.06b and earnings per share (EPS) of US$4.03 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$116, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Knife River at US$125 per share, while the most bearish prices it at US$82.12. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Knife River's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past three years. Compare this to the 16 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.4% per year. So it's pretty clear that, while Knife River's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$116, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Knife River going out to 2026, and you can see them free on our platform here.

You can also see whether Knife River is carrying too much debt, and whether its balance sheet is healthy, for free  on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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