By Connor Hart

Shares of Knife River slid after the construction materials company posted lower-than-expected results for the third quarter and tempered its full-year outlook.

The stock fell 12% to $86.13 in afternoon trading Monday. Shares are up 30% this year.

Before the bell, the company reported a profit of $148.1 million, or $2.60 a share, compared with $146.7 million, or $2.58 a share, in the same quarter last year. Analysts polled by FactSet expected per-share earnings of $2.81.

Revenue rose 1.4% to $1.11 billion, just missing the $1.12 billion that Wall Street forecast, according to FactSet.

Higher revenue in the company's Pacific, Northwest and Mountain regions offset flat year-over-year sales in its Central region. Energy services sales fell 10% to $125.9 million, dragged down by lower prices for liquid asphalt across all markets.

Chief Executive Brian Gray said higher corporate development costs relating to acquisitions dampened the recent quarter's results, though he added that these investments should enhance the company's long-term profitability. The company this year has spent $129.3 million on six deals. Gray said the company is considering other potential acquisitions as well.

For the year, Knife River expects lower volumes to more than offset planned price increases. The company narrowed its full-year revenue outlook to $2.85 billion to $2.95 billion from $2.8 billion to $3 billion. Analysts surveyed by FactSet are looking for $2.89 billion.

It backed the low end of its adjusted earnings before interest, taxes, depreciation and amortization outlook, at $445 million, but lowered the high end to $465 million from $485 million. Wall Street expects adjusted Ebitda of $466.6 million, according to FactSet.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 04, 2024 14:10 ET (19:10 GMT)

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