APA Corporation Prepares to Announce Q1 Results Amid Market Struggles

Based in Houston, Texas, APA Corporation (APA) is engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids. With a market capitalization of $5.7 billion, the company’s operations extend across the United States, Egypt, and the North Sea.

Anticipated Earnings and Quarterly Results

APA is set to announce its first-quarter results after the markets close on Wednesday, May 7. Analysts forecast that the company will report an adjusted EPS of $0.81, reflecting a 3.9% increase from the $0.78 reported in the same quarter last year. While APA has exceeded bottom-line estimates once in the past four quarters, it has missed projections three times.

Full-Year Earnings Projections

Looking ahead to full fiscal 2025, APA is projected to deliver earnings of $3.07 per share. This figure represents a substantial decline of 18.6% from the $3.77 per share registered in fiscal 2024. Furthermore, estimates indicate that earnings might fall further in fiscal 2026, with projections suggesting an 11.1% decrease year-over-year to $2.73 per share.

Stock Performance and Market Trends

APA’s stock has dropped 49.3% over the last 52 weeks, significantly underperforming compared to the S&P 500 Index’s 8.2% gains and the Energy Select Sector SPDR Fund’s (XLE) 14.2% decline during the same period.

Following the release of its disappointing Q4 results on February 26, APA’s stock price dropped 7.2%. Although the company’s revenue for the quarter rose 32.2% year-over-year to $2.5 billion—exceeding Street expectations by nearly 10%—poor expense management caused adjusted net income to fall 17.6% to $290 million. Additionally, its adjusted EPS of $0.79 fell short of consensus estimates by 18.6%, raising concerns among investors.

Analyst Recommendations

Despite the challenges, analysts maintain a cautious outlook on APA’s stock. The general consensus remains neutral, with a “Hold” rating overall. Among the 26 analysts tracking APA, the breakdown includes six “Strong Buys,” one “Moderate Buy,” 15 “Holds,” one “Moderate Sell,” and three “Strong Sells.” Currently, the stock trades notably below its average price target of $23.42.

On the date of publication, Aditya Sarawgi 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.

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