On Friday, a financial analyst from Jefferies updated their assessment of EQT Corp. (NYSE:EQT (ST:EQTAB)), increasing the share price target to $43.00, up from the previous $42.00. The firm has maintained a Buy rating on the shares of the natural gas producer.
The analyst anticipates EQT Corp. to report first quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) and cash flow per share (CFPS) of $892 million and $1.86, respectively. These figures are slightly below the consensus estimates of $906 million in EBITDA and $1.93 in CFPS.
The expected performance follows the company's announced production curtailments, with total volumes estimated at around 5.65 billion cubic feet equivalent per day (bcfepd).
The company's capital expenditures (capex) for the quarter are projected at $562 million, with free cash flow (FCF) anticipated to be $267 million. The forthcoming earnings announcement is likely to concentrate on updates regarding EQT's pipeline partner Equitrans Midstream Corporation (NYSE:ETRN), guidance for the year 2024, and expectations for free cash flow.
According to the analyst, potential catalysts for the stock could include enhanced visibility on EQT's debt reduction strategy, particularly through asset sales, or further clarity on the regulatory approval timeline for Equitrans Midstream. The revised price target of $43 reflects a market-to-market valuation of the company's estimates.
InvestingPro Insights
As EQT Corp. (NYSE:EQT) approaches its earnings date, the updated financial metrics and analyst insights from InvestingPro provide a clearer picture of the company's performance and market position. With a current market capitalization of $16.2 billion and a P/E ratio of 8.07, EQT appears to be valued attractively relative to its earnings. The P/E ratio, adjusted for the last twelve months as of Q4 2023, stands slightly higher at 8.58, reflecting a nuanced view of the company's profitability.
The InvestingPro Tips indicate that although analysts have revised their earnings downwards for the upcoming period, they still predict EQT will be profitable this year and note that the company has been profitable over the last twelve months. This aligns with the company's solid operating income margin of 50.64% and a robust gross profit margin of 53.44%, as of the last twelve months ending Q4 2023. These margins underscore EQT's ability to manage costs effectively and maintain profitability.
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