Here's What to Expect From APA Corporation's Next Earnings Report
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.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.