Houston, Texas-based Targa Resources Corp. (TRGP) owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. With a market cap of $47.4 billion, Targa Resources operates through Gathering and Processing, and Logistics and Transportation segments.
The midstream energy giant is set to announce its Q4 results before the market opens on Thursday, Feb. 20. Ahead of the event, analysts expect Targa to report a non-GAAP profit of $1.92 per share, up a staggering 56.1% from $1.23 per share reported in the year-ago quarter. While the company has surpassed Wall Street’s earnings projections twice over the past four quarters, it has missed the estimates on two other occasions. Its adjusted EPS for the last reported quarter surged 80.4% year-over-year to $1.75, exceeding the consensus estimates by 10.8%.
For the full fiscal 2024, Targa is expected to report an adjusted EPS of $6.42, up a massive 75.4% from $3.66 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 26.5% year-over-year to $8.12 per share.
TRGP stock prices have skyrocketed 152.1% over the past 52 weeks, significantly outpacing the S&P 500 Index’s ($SPX) 25.5% surge and the Energy Select Sector SPDR Fund’s (XLE) 14.1% gains during the same time frame.
Targa Resources stock prices soared 4.9% after the release of its impressive Q3 results on Nov. 5. Although the company’s commodity sales observed a slight decrease due to lower natural gas prices and unfavourable impact of hedges, driven by growth in Permian, NGL transportation, and fractionation volumes, it observed significant improvement in profitability. Targa’s total revenues for the quarter dipped 1.1% year-over-year to approximately $3.9 billion, which missed Wall Street’s expectations. Meanwhile, its adjusted EBITDA soared 27.3% year-over-year to a record $1.1 billion.
The consensus opinion on TRGP stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 19 analysts covering the stock, 17 recommend “Strong Buy,” one advises “Moderate Buy,” and one suggests a “Hold” rating. As of writing, TRGP is trading slightly below its mean price target of $212.90.
