EQT Corporation (EQT), headquartered in Pittsburgh, Pennsylvania, operates as a natural gas production company. With a market cap of $16 billion, EQT is an integrated energy company with emphasis on Appalachian area natural-gas supply, transmission, and distribution. The company offers natural gas products to wholesale and retail customers. The leading independent natural gas producer is expected to announce its fiscal third-quarter earnings for 2024 on Wednesday, Oct. 23.
Ahead of the event, analysts expect EQT to report a profit of $0.16 per share on a diluted basis, down 46.7% from $0.30 per share in the year-ago quarter. The company beat or matched the consensus estimates in each of the last four quarters.
For the full year, analysts expect EQT to report EPS of $1.37, down 40.2% from $2.29 in fiscal 2023. However, its EPS is expected to rise 151.1% year over year to $3.44 in fiscal 2025.
EQT stock has underperformed the S&P 500’s ($SPX) 33.1% gains over the past 52 weeks, with shares down 5.9% during this period. Similarly, it underperformed the Energy Select Sector SPDR Fund’s (XLE)2.4% gains over the same time frame.
EQT has faced challenges due to low natural gas prices, rising interest costs, and lower revenues despite increased production levels. The proposed merger between Chesapeake Energy and Southwestern Energy has also raised concerns about competition. However, with a recent upturn in demand and gas prices, EQT has decided to partially reverse its production cuts in October and November. The company expects to incur pre-tax charges of $165 million to $185 million for job cuts, including severance pay and other benefits, with the majority of these charges occurring in the upcoming quarter.
On Jul. 23, EQT shares closed down more than 1% after reporting its Q2 results. Its adjusted revenue stood at $1.2 billion, up 19.1% year over year. The company reaffirmed its expectation of 2024 total sales volume of 2,100 to 2,200 Bcfe, and maintained its full-year capital expenditures guidance of $1,950 to $2,050 million.
Analysts’ consensus opinion on EQT stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and nine give a “Hold.” EQT’s average analyst price target is $42.57, indicating a potential upside of 15.8% from the current levels.
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