Why Kodiak Gas Services Stock Wasn't Catching Fire This Week.

Kodiak Gas Services $Kodiak Gas Services (KGS.US)$ wasn't exactly having a week for the ages on the stock exchange. The company's shares slumped in the wake of a quarterly earnings report that many investors found discouraging. As of early Friday morning, according to data compiled by S&P Global Market Intelligence, the specialty equipment company's stock had lost nearly 9% of its value week to date.

Headline second-quarter results traveled in opposite directions
Kodiak's second quarter had quite the split personality. Revenue soared 52% higher on a year-over-year basis to nearly $310 million. Net income went harder in the opposite direction, however, sliding by a steep 62% to hit $6.7 million ($0.06 per share) according to GAAP standards.

While the top-line figure far exceeded the average analyst estimate of $223 million, that net income number didn't come close to the consensus $0.34 per share.

In its earnings release, Kodiak chose to focus on the more positive developments of the quarter. CEO Mickey Mckee said, "We are pleased with our second quarter 2024 results as we completed the acquisition of CSI Compressco to form the industry's largest contract compression fleet and delivered record revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA)."

EBITDA guidance adjusted for 2024
Speaking of EBITDA, Kodiak is looking to better times ahead for that financial metric. It has bumped its full-year guidance for non-GAAP (adjusted) EBITDA slightly higher; it now expects to post $590 million to $610 million for the entirety of 2024. Previously, that range was wider at $580 million to $610 million.