Will WKC's EPS recover in 2025?

**World Kinect's EPS is unlikely to recover in 2025 based on current indicators and trends.** Here's why:

1. **Recent Performance and Challenges**: World Kinect's most recent reported EPS was -$1.77 for Q4 2024. This negative EPS indicates that the company has been unprofitable recently, which is a concerning sign for future earnings projections.

|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. **Revenue and Profitability Issues**: The company's revenue has faced challenges, with a decline of approximately -18.68% as of December 31, 2024. This decline in revenue, coupled with a low gross margin of 2.65%, suggests that World Kinect is struggling with cost efficiency and profitability.
3. **Insider Activity**: The insider sell by Michael Kasbar, the Chairman of World Kinect, could be indicative of doubts about the company's future performance. Insider actions can be a signal to investors about the confidence that insiders have in the company's future prospects.
4. **Dividend Payments**: While World Kinect has announced a quarterly dividend of $0.17, which represents a dividend yield of 2.43%, the payout ratio of 23.1% suggests that the dividend is well-covered by earnings. However, this does not necessarily translate to improved EPS, as the dividend payments are a fraction of the earnings and do not indicate a recovery in EPS.
5. **Analyst Expectations**: Analysts predict an EPS of $3.09 for next year, which is a significant upside from the current EPS. However, given the current financial health and recent performance, it is optimistic to assume a swift recovery to this level.
6. **Market Conditions and Competition**: The energy sector is competitive, and World Kinect faces challenges in achieving growth rates that surpass its peers. Market conditions and competition within the energy sector can significantly impact a company's financial performance and EPS.

In conclusion, while there is a possibility of EPS recovery, the current financial data and market conditions suggest that it may be difficult for World Kinect's EPS to recover in 2025. The company needs to demonstrate significant improvements in revenue growth, profitability, and cost efficiency to achieve a recovery in EPS.