Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Benchmark analysts maintained their Buy rating on Permian Resources Corp (NYSE:PR) shares, with a steady price target of $14.00. With a current market capitalization of $11.3 billion and trading at an attractive P/E ratio of 9.2x, the stock has caught analysts’ attention. The firm’s analysts provided insight into their expectations for the company’s financial performance, noting a slight variance from the broader market consensus. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period. Benchmark’s forecast for Permian Resources’ first-quarter earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) is $0.41 and $986 million, respectively. These figures are modestly below the market consensus, which anticipates an EPS of $0.42 and EBITDA of $1.0 billion. The company’s trailing twelve-month EBITDA stands at $3.64 billion, demonstrating strong operational performance.
The analysts also highlighted a discrepancy in volume forecasts, with the consensus estimates being 2% higher than what Benchmark projects. Despite this minor divergence in expectations, the firm’s stance on Permian Resources’ stock remains positive.
Permian Resources, an energy company specializing in the exploration and production of oil and natural gas, operates primarily in the Permian Basin. The region is known for its rich hydrocarbon reserves and is a significant contributor to the company’s output. The company has demonstrated impressive growth, with revenue increasing by 60% in the last twelve months and maintaining a healthy gross profit margin of 75%.
The maintained price target of $14.00 by Benchmark suggests that the analysts see potential for the stock to perform well, despite their slightly conservative estimates for the upcoming quarter compared to the consensus. The Buy rating indicates that Benchmark believes the stock will outperform the market or its sector in the near future.
Investors in Permian Resources Corp will be watching closely as the company approaches the release of its first-quarter financial results. The information disclosed by Benchmark provides a glimpse into the expectations that analysts have for the company’s financial health and operational performance.
In other recent news, Permian Resources Corp reported its fourth-quarter 2024 earnings, showing an earnings per share (EPS) of $0.29, which missed the forecasted $0.35. The company’s revenue also fell short of expectations, coming in at $1.3 billion against a forecast of $1.32 billion. Despite the earnings miss, Citi analysts maintained a Buy rating on Permian Resources, though they adjusted their price target from $18.00 to $17.00. The adjustment came after the company’s adjusted cash flow of approximately $904.1 million exceeded both consensus and Citi’s estimates.
Susquehanna analyst Biju Perincheril upgraded Permian Resources’ stock rating from Neutral to Positive, raising the price target from $17.00 to $20.00, citing the company’s successful mergers and acquisitions and improvements in capital efficiency. The analyst noted that Permian Resources is trading at a discount compared to its peers, which, along with operational advancements, led to the positive reassessment. The company’s financial performance was attributed to better-than-expected production numbers and lower operating expenses.
Citi analysts mentioned the potential for increased production due to improved drilling efficiency and longer laterals, while also highlighting the company’s ongoing improvements in operational efficiencies despite the volatile commodity market conditions. Permian Resources ended the year with a strong liquidity position, maintaining $3 billion, including $500 million in cash, and projecting an 8% growth in oil production for 2025.
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