Houston, Texas-based APA Corporation (APA) is an energy company engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. With a market cap of $11.2 billion, APA’s operations span the United States, Egypt, and the North Sea. It is expected to announce its Q2 earnings after the market closes on Wednesday, July 31.
Ahead of the event, analysts expect APA Corporation to report a profit of $0.95 per share, up 11.8% from $0.85 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in two of the past four quarters while missing on two other occasions. Its EPS for the last reported quarter declined 34.5% year over year to $0.78 and missed the consensus estimates by 13.3%.
Looking ahead to fiscal 2024, analysts expect APA Corporation to report an EPS of $4.17, down 8% from $4.53 in fiscal 2023. However, in fiscal 2025, its EPS is projected to grow 23.5% year over year to $5.15.
APA stock is down 13.2% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 13.2% gains and the S&P 500 Energy Sector SPDR’s (XLE) 9.6% returns over the same time frame.
Shares of APA Corporation tumbled following the company’s fiscal Q1 earnings release on May 1, as the company’s annual decline in revenues and earnings disappointed investors. The stock lost 3% on the earnings release day and 4.3% the following day. Its operating expenses rose by 19.3%, leading to a massive drop in profits and raising concerns about its operational efficiencies.
However, the company has kept up its streak of quarterly dividend payouts for 22 consecutive years and showed its dedication to shareholders by returning $176 million through dividends and share buybacks in Q1.
The consensus opinion on APA stock is neutral, with an overall “Hold” rating. Out of the 25 analysts covering the stock, eight recommend a “Strong Buy,” 13 suggest a “Hold,” two advocate a “Moderate Sell,” and the remaining two advise a “Strong Sell” rating.
The average target price for APA is $38.54, indicating a potential upside of 23.2% from current price levels.
On the date of publication, Sristi Jayaswal 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.
