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On Thursday, Benchmark analysts maintained their Buy rating on Apache Corp . (NASDAQ:APA) with a steady price target of $33.00, above the current stock price of $20.78. According to InvestingPro data, analyst targets for APA range from $20 to $40, with 13 analysts recently revising their earnings expectations downward. The firm’s analysts provided insights into their earnings projections for the company, noting their expectations for the first quarter earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA).
The analysts expect Apache to report a first-quarter EPS of $0.90 and an EBITDA of $1.33 billion, which falls below the consensus EPS of $0.77 and slightly under the consensus EBITDA of $1.36 billion. For context, APA’s last twelve months EBITDA stands at $5.63 billion, with a healthy gross profit margin of 69%. The difference in EPS expectations is attributed to the treatment of non-controlling interests in Egypt by the analysts at Benchmark.
Benchmark’s forecast for Apache’s production volumes is 1% lower than the consensus estimates. Additionally, the prices, particularly for natural gas liquids (NGLs), are anticipated to be 5% higher than what Benchmark has projected. These factors have contributed to the variance between Benchmark’s predictions and the consensus figures.
The reiteration of the Buy rating and the $33.00 price target by Benchmark indicates their continued confidence in Apache’s stock performance. The price target remains unchanged, suggesting that the analysts see Apache maintaining its value in the market. InvestingPro analysis reveals that APA has maintained dividend payments for 55 consecutive years, currently offering a 4.8% yield. Get access to 6 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report, available for over 1,400 US stocks.
Apache Corp. has not yet released its official financial results for the first quarter, with the next earnings date set for April 30, 2025, and the market will be looking forward to seeing how the company’s actual performance measures up against the analysts’ expectations. Benchmark’s analysis provides a snapshot of what investors might anticipate regarding Apache’s upcoming financial disclosures. With significant stock price volatility and a beta of 3.27, investors seeking detailed insights can access comprehensive valuation metrics and expert analysis through InvestingPro’s advanced tools and research reports.
In other recent news, APA Corporation reported its fourth-quarter 2024 earnings, revealing a shortfall against analysts’ expectations with an adjusted earnings per share (EPS) of $0.79, below the forecast of $0.9767. Revenues also missed projections, totaling $2.19 billion against an expected $2.28 billion. Following this, APA announced a significant cost-cutting initiative targeting $350 million in savings by 2027. In the realm of stock ratings, Raymond (NSE:RYMD) James downgraded APA from Strong Buy to Outperform, adjusting the price target to $32.00 from $45.00, citing recent cost-cutting measures and oil price volatility. Evercore ISI also reduced its price target for Apache Corp., a subsidiary of APA, from $30.00 to $25.00, maintaining an In Line rating while noting the company’s focus on its Permian and Egypt operations. Meanwhile, CFRA adjusted APA’s rating from Strong Sell to Sell, maintaining a price target of $19.00, and highlighted an increased 2025 EPS forecast. Additionally, Kinetik Holdings Inc. announced a $250 million sustainability-linked notes offering, intended for general corporate purposes, including debt repayment. These are recent developments that could influence investor decisions.
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