Targa Resources Prepares to Release Strong Q1 Earnings Results

Houston, Texas-based Targa Resources Corp. (TRGP) specializes in managing, acquiring, and developing a comprehensive portfolio of midstream infrastructure assets across North America. With a market capitalization around $38 billion, Targa Resources operates primarily through its Gathering and Processing and Logistics and Transportation segments.

The midstream energy company plans to announce its first-quarter results before the market opens on Thursday, May 1. Analysts are projecting a non-GAAP profit of $2.04 per share, representing a remarkable increase of 67.2% compared to $1.22 per share reported during the same quarter last year. Although Targa has exceeded Wall Street’s earnings forecasts twice over the last four quarters, it also fell short of estimates on two occasions.

For the entire fiscal year 2025, Targa’s earnings are anticipated to reach $8.34 per share, a 43.5% increase from $5.74 reported in fiscal 2024. Additionally, earnings for fiscal 2026 are projected to rise by 19.1% year-over-year, reaching $9.93 per share.

Targa Resources’ stock has gained 55.6% over the past year, significantly outperforming the Energy Select Sector SPDR Fund (XLE), which dropped 13.4%, and the S&P 500 Index ($SPX), which saw a modest gain of 5.4% during the same period.

Following the release of its mixed Q4 results on February 20, Targa’s stock declined by 2.7%. The company reported a significant increase in sales from both commodities and midstream services, contributing to a 4% year-over-year growth in overall revenue, totaling $4.4 billion. This figure exceeded market expectations. Furthermore, adjusted EBITDA rose 17% year-over-year to $1.1 billion. However, adjusted earnings of $1.44 fell short of consensus estimates by 23.4%, causing some concern among investors.

Despite these concerns, analysts maintain a strong confidence in Targa’s outlook. The consensus opinion on TRGP is very optimistic, with an overall “Strong Buy” rating. Out of the 19 analysts covering the stock, 18 recommend a “Strong Buy” while one suggests a “Moderate Buy.” The average price target of $224.65 indicates an upside potential of 28.7% from current price levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

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