As you might know, Kinetik Holdings Inc. (NYSE:KNTK) recently reported its quarterly numbers. Results were mixed, with revenues of US$443m exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were US$0.05 per share, -83% short of analyst expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Kinetik Holdings' seven analysts is for revenues of US$2.00b in 2025. This would reflect a substantial 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 75% to US$1.60. In the lead-up to this report, the analysts had been modelling revenues of US$1.76b and earnings per share (EPS) of US$1.60 in 2025. It seems sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Kinetik Holdings

Even though revenue forecasts increased, there was no change to the consensus price target of US$55.25, suggesting the analysts are focused on earnings as the driver of value creation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Kinetik Holdings at US$70.00 per share, while the most bearish prices it at US$42.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Kinetik Holdings' growth to accelerate, with the forecast 36% annualised growth to the end of 2025 ranking favourably alongside historical growth of 17% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kinetik Holdings is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Kinetik Holdings going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted  4 warning signs for Kinetik Holdings  (of which 2 make us uncomfortable!) you should know about.

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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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