Is WKC's EPS decline a long-term concern?

**World Kinect's (WKC) EPS decline is not necessarily a long-term concern.** Here's why:

1. **Recent Performance**: WKC's EPS dropped to -$1.77 for the most recent quarter ending on December 31, 2024. This is a significant decrease from the previous quarter's EPS of $0.62, which beat the consensus estimate.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|WKC|WKC.N|World Kinect|2024 Q1|25.000000000000007|0.45|169|
|WKC|WKC.N|World Kinect|2024 Q2|277.08333333333337|1.81|169|
|WKC|WKC.N|World Kinect|2024 Q3|-1.7241379310344844|0.57|169|
|WKC|WKC.N|World Kinect|2024 Q4|-205.17241379310346|-1.77|169|

2. **Analyst Ratings and Targets**: The consensus rating for WKC is "Neutral" with an average price target of $30. This suggests that analysts do not see the current EPS decline as a long-term issue, as they are not lowering their price targets significantly.

3. **Institutional Activity**: Institutional investors have been making changes to their positions in WKC. WINTON GROUP Ltd reduced its position by 52.3%, while Quantbot Technologies LP increased its stake by 17.4%. This mixed activity among institutional investors does not indicate a clear long-term concern.
4. **Dividend Payments**: WKC has declared a quarterly dividend of $0.17 per share, representing a dividend yield of 2.43%. This indicates that the company is still able to pay a dividend, which could be seen as a positive sign for long-term investors.
5. **Strategic Moves**: WKC has sold the Avinode Group and its portfolio of aviation software products for approximately $200 million. This strategic move could help the company streamline its operations and focus on core business segments, potentially leading to improved long-term profitability.
6. **Market Position and Growth Prospects**: WKC operates in three reportable segments consisting of aviation, land, and marine. The company's ability to adapt to market changes and focus on sustainability could position it well for long-term growth.

In conclusion, while the current EPS decline is concerning in the short term, the lack of a clear long-term strategy from analysts, the company's ability to pay dividends, and its strategic moves to sell non-core assets suggest that this may not be a long-term concern. However, investors should monitor the company's performance closely and consider the potential risks before making investment decisions.