Kirby Corp. (NYSE: KEX) reported Q3 EPS of $0.52, $0.07 better than the analyst estimate of $0.45. Revenue for the quarter came in at $541.3 million versus the consensus estimate of $509.5 million.

Outlook

Commenting on the 2017 fourth quarter and full year market outlook and guidance, Mr. Grzebinski said, "Our earnings guidance for the 2017 fourth quarter is $0.40 to $0.55 per share compared with $0.60 per share for the 2016 fourth quarter, and considers the full effect of the shares issued as part of the S&S acquisition. Our full year earnings guidance is updated to $1.90 to $2.05 per share, compared to prior guidance of $1.80 to $2.10 per share. Fourth quarter and full year guidance contemplates inland marine transportation utilization in the mid-80% range at the low end and mid-90% range at the high end. In our coastal market, we expect utilization in the low 60% to mid-60% range for the fourth quarter. In the coastal market we remain focused on managing costs and optimizing the equipment available for commercial use."

Mr. Grzebinski continued, "In our distribution and services segment, we expect demand for pressure pumping remanufacturing to maintain at third quarter levels for the remainder of the year. We anticipate demand for transmission overhauls will dip slightly in the fourth quarter, and demand for new transmissions will remain steady. We also expect to deliver a new pressure pumping fleet in the fourth quarter. For S&S, we are guiding to $0.03 to $0.05 per share, increased from prior guidance of $0.02 to $0.04 per share. This includes the impact of higher average shares outstanding due to the shares issued for the acquisition. We anticipate demand for rental equipment will return to normal levels. In our marine and power generation distribution and services business we expect seasonally lower business levels sequentially."

Kirby expects 2017 capital spending to be in the $175 to $185 million range, updated from previous guidance of $165 to $185 million. Capital spending guidance includes approximately $50 million in progress payments on new coastal equipment, including a 155,000 barrel ATB, two 4900 horsepower and six 5000 horsepower coastal tugboats. The balance of $125 to $135 million is primarily for five new inland tank barges and capital upgrades and improvements to existing inland and coastal marine equipment and facilities, as well as distribution and services facilities.

GUIDANCE:

Kirby Corp. sees FY2017 EPS of $1.90-$2.05, versus the consensus of $1.96.

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