Knife River Corporation (NYSE:KNF) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results don't look great, especially considering that statutory losses grew 29% toUS$1.21 per share. Revenues of US$354m did beat expectations by 4.5%, but it looks like a bit of a cold comfort. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Knife River from nine analysts is for revenues of US$3.22b in 2025. If met, it would imply a solid 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 26% to US$4.03. Before this earnings report, the analysts had been forecasting revenues of US$3.12b and earnings per share (EPS) of US$4.02 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

Check out our latest analysis for Knife River

Even though revenue forecasts increased, there was no change to the consensus price target of US$110, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Knife River, with the most bullish analyst valuing it at US$125 and the most bearish at US$81.32 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Knife River's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.5% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Knife River to grow faster than the wider industry.

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The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$110, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Knife River. Long-term earnings power is much more important than next year's profits. We have forecasts for Knife River going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Knife River that you need to take into consideration.

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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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