EQT Corporation’s Recent Struggles and Market Outlook
EQT Corporation (EQT), valued at $16.3 billion, stands as a key player in the natural gas sector, particularly in the Appalachian Basin, with its headquarters located in Pittsburgh, Pennsylvania. The company is dedicated to natural gas exploration, production, and marketing, catering to various customers throughout the United States.
Stock Performance Falls Short
The last 52 weeks have been challenging for EQT, with its stock price declining by 16.1%. In contrast, the broader S&P 500 Index ($SPX) has seen a rise of 32.7%. Looking at the year 2024 so far, EQT shares are down 2.9%, while the SPX has gained 21.2%.
Comparison With Industry Benchmarks
Moreover, EQT’s performance has trailed the Energy Select Sector SPDR Fund’s (XLE) growth of 4% over the past year and 7.6% year-to-date.
Quarterly Results Inspire Investor Confidence
Challenges such as low natural gas prices and increased interest expenses have hindered EQT’s performance. Interestingly, the stock experienced a 3.4% rise following a better-than-expected Q3, showing an adjusted EPS of $0.12 on Oct. 29, despite a slight miss in revenue. The company managed to exceed its sales volume guidance of 581 Bcfe, benefiting from operational efficiencies and cutting down capital expenditures below the low end of its guidance. Furthermore, EQT is making strides in integrating Equitrans Midstream, achieving 60% completion of this task and realizing $145 million in annualized synergies, which has bolstered investor sentiment.
Analysts Weigh In on Future Earnings
Analysts predict that for the fiscal year ending in December, EQT’s EPS is expected to fall by 39.3% from last year, totaling $1.39 per share. Nevertheless, EQT has a solid track record, having beaten or met consensus estimates in the last four quarters.
Currently, among 20 analysts assessing the stock, the overall consensus rating stands at “Moderate Buy.” This takes into account 11 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
Price Targets and Future Outlook
On Nov. 4, EQT’s stock price rose 3.3% after UBS increased its price target to $42 and Piper Sandler raised its target to $34, both maintaining “Neutral” ratings. This comes in the wake of the company’s strong Q3 results and positive Q4 volume guidance, despite higher capital expenditures, which are anticipated to lessen in 2025 thanks to cost-saving strategies.
Currently, EQT trades below the average price target of $42.48. The highest target of $55 suggests a potential upside of 46.5% from the current price.
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On the date of publication, Sohini Mondal 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
