Insights 
VT 
Year-To-Date Performance
Before the recent earnings release, Kirby’s estimate revisions were mixed, giving it a Zacks Rank of #3 (Hold). The current consensus expectations for the next quarter are an EPS of $1.66 on revenues of $888.38 million.
In the same sector, Seanergy Maritime Holdings Corp (SHIP) has yet to report and is anticipated to post an EPS of $0.46, reflecting a 33.3% decrease year-over-year. Their expected revenues stand at $44.02 million, slightly down by 0.8% from the previous year.
Kirby’s earnings beat is a positive sign, but we are concerned about the consistent revenue misses. This mixed signal suggests the market is unsure about future demand for their barge services. We have seen implied volatility on KEX options jump over 45% as the market prices in a significant move following management’s commentary.
Trading Strategies
The stock’s 16% drop this year shows a strong bearish trend that this report may not break. Recent October 2025 data from the Energy Information Administration showing lower refinery utilization rates supports the revenue weakness we are seeing. Traders may consider buying puts expiring in November or December to capitalize on continued downward pressure.
Since the stock’s direction depends heavily on management’s outlook, a non-directional play is also viable. A long straddle, buying both a call and a put, would profit from a large price swing in either direction after the earnings call. This strategy focuses on the high level of uncertainty rather than a specific outcome.
The wider shipping sector is showing signs of weakness, reminding us of the normalization we saw back in 2022 after the supply chain boom. With the Baltic Dry Index falling 12% over the last month and estimates for peers like Seanergy Maritime being slashed, there is significant industry-wide headwind. This makes the case for being cautious on the entire sector, despite Kirby’s individual earnings performance.
On the other hand, we can’t ignore four straight earnings beats and the fact the industry is ranked in the top 35% of all sectors. For those who believe management will deliver a positive outlook, a bull call spread offers a way to bet on a modest rally with limited risk. This strategy would benefit if the stock recovers some of its year-to-date losses but protects against a sharp downturn.
