What Happened?
Shares of marine transportation service company Kirby (NYSE: KEX) jumped 16% in the afternoon session after the company reported strong third-quarter financial results that surpassed analyst expectations for both revenue and profit. The marine transportation service company announced revenue of $871.2 million, representing 4.8% growth year-on-year and beating Wall Street's estimates. Its profit also came in ahead of expectations, with earnings per share of $1.65, up from $1.55 in the same quarter last year. The results were further supported by strong cash generation, as the company's free cash flow margin increased to 18.4%, up from 15.7% in the prior year's quarter. This indicates improved efficiency in converting its profits into cash, a positive sign for investors.
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What Is The Market Telling Us
Kirby’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Kirby and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 22 days ago when the stock dropped 1.9% on the news that the Trump administration announced a new 25% tariff on imported trucks. President Trump announced via his Truth Social platform that a 25% tariff will be levied on all medium and heavy-duty trucks imported into the United States, effective November 1st, 2025. This move is poised to have a significant impact on truck manufacturers, particularly those based in neighboring countries that export to the U.S. The new tariff could increase costs for foreign manufacturers, potentially altering the competitive landscape within the heavy-vehicle industry. Investors are now watching to see how this will affect supply chains, pricing, and the stock performance of both domestic and international truck makers.
Kirby is down 3.3% since the beginning of the year, and at $101.54 per share, it is trading 22.2% below its 52-week high of $130.55 from November 2024. Investors who bought $1,000 worth of Kirby’s shares 5 years ago would now be looking at an investment worth $2,676.
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