Valued at a market cap of $8.6 billion, APA Corporation (APA) is an independent energy company that develops and produces natural gas, crude oil, and natural gas liquids. The Houston, Texas-based company is also involved in the midstream business through its minority stake in Permian-focused Altus Midstream Company. It is scheduled to announce its fiscal Q4 earnings results on Wednesday, Feb. 19.
Ahead of this event, analysts project the energy company to report a profit of $1.02 per share, down 11.3% from $1.15 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the last four quarters while missing on three other occasions. Its earnings of $1 per share in the previous quarter missed the forecasted figure by 2.9%.
For fiscal 2024, analysts expect APA to report an EPS of $4.09, down 9.7% from a profit of $4.53 in fiscal 2023. Moreover, the EPS is expected to decline 12.5% year-over-year to $3.58 in fiscal 2025.
Shares of APA have declined 23.9% over the past 52 weeks, significantly underperforming both the S&P 500 Index's ($SPX) 25.5% rise and the Energy Select Sector SPDR Fund’s (XLE) nearly 14.1% return over the same time frame.
APA released its Q3 earnings results on Nov. 6 and APA’s shares crashed 11.3% on the subsequent day as the company’s adjusted earnings of $1 per share came in below the Wall Street estimates and declined by a notable 24.8% from the year-ago quarter. Lower natural gas and crude oil prices coupled with a sharp rise in operating expenses led to the bottom-line miss. However, on the brighter side, its revenue climbed 10% year-over-year to $2.5 billion. It surpassed the consensus estimate by 11.7%, driven by the benefits from the Callon Petroleum acquisition and higher-than-expected production.
Wall Street analysts are cautious about APA’s stock, with a "Hold" rating overall. Among 26 analysts covering the stock, seven recommend "Strong Buy," 15 recommend “Hold,” one indicates a “Moderate Sell,” and three suggest “Strong Sell.” This configuration is slightly less bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
The mean price target for APA is $30.08 which indicates a 28.8% potential upside from the current levels.
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