How are energy investors positioned?
On Thursday, Benchmark analysts maintained a positive stance on Expand Energy stock (NASDAQ:EXE), reiterating a Buy rating and a $93.00 price target. This aligns with the broader analyst consensus, as InvestingPro data shows 11 analysts have recently revised their earnings estimates upward, with price targets ranging from $91 to $170. The firm’s analysts expect the company to outperform market expectations for the first quarter, projecting earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) to surpass consensus estimates.
The Benchmark team forecasts that Expand Energy will report an EPS of $1.69 and an EBITDA of $1.19 billion for the first quarter. These figures are higher than the consensus estimates, which are $1.59 for EPS and $1.17 billion for EBITDA. The analysts attribute their higher projections to stronger product realizations, noting that their estimates are approximately 5% above the consensus, with a slight lead in every product category. The stock has shown strong momentum, gaining 40% over the past six months and currently trading near its 52-week high of $109.47.
The company’s financial performance is closely watched by investors, as EPS and EBITDA are key indicators of a company’s profitability and operational efficiency. A higher than expected performance in these areas can often lead to increased investor confidence and a positive reaction in the stock market. According to InvestingPro analysis, while the stock has shown strong returns, it appears to be trading above its Fair Value, suggesting investors should carefully consider entry points.
Benchmark’s analysis suggests that Expand Energy’s upcoming financial results could provide a bullish signal for the company’s stock. Their maintained Buy rating and price target reflect a belief in the company’s continued growth and potential for delivering shareholder value.
Investors and market watchers will be looking forward to Expand Energy’s official earnings release to see if the company meets or exceeds the optimistic projections set forth by Benchmark analysts. The anticipation of these results could influence trading activity and sentiment surrounding the stock in the near term.
In other recent news, Expand Energy has made headlines with its strong financial performance and strategic developments. The company reported fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.55, compared to the forecasted $0.43. Revenue also exceeded expectations, reaching $2 billion against an anticipated $1.85 billion. Despite these positive results, the stock saw a decline in after-hours trading, which might reflect broader market trends. Expand Energy has outlined plans for significant debt reduction and shareholder returns in 2025, aiming to reduce net debt to below $4.5 billion by the year’s end.
In addition, Expand Energy has been included in the S&P 500, replacing FMC Corp (NYSE:FMC). This inclusion is seen as a milestone for the company, indicating its growth and stability in the large-cap market segment. The move is expected to broaden the investor base and increase liquidity for its shares. Moreover, the company has announced a $750 million investment-grade bond issuance as part of its financial strategy. Analyst firms have shown optimism about the company’s future, with a positive outlook for the natural gas market and LNG export capacity growth. These developments reflect Expand Energy’s strong operational execution and market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.