Energy Transfer's Earnings Outlook

Energy Transfer ET is set to give its latest quarterly earnings report on Wednesday, 2024-08-07. Here's what investors need to know before the announcement.

Analysts estimate that Energy Transfer will report an earnings per share (EPS) of $0.36.

The announcement from Energy Transfer is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

Last quarter the company missed EPS by $0.08, which was followed by a 2.08% drop in the share price the next day.

Here's a look at Energy Transfer's past performance and the resulting price change:

Market Performance of Energy Transfer's Stock

Shares of Energy Transfer were trading at $15.81 as of September 09. Over the last 52-week period, shares are up 16.0%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Energy Transfer

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Energy Transfer.

The consensus rating for Energy Transfer is Buy, based on 2 analyst ratings. With an average one-year price target of $20.0, there's a potential 26.5% upside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of ONEOK, Williams Companies and Kinder Morgan, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for ONEOK, with an average 1-year price target of $92.56, indicating a potential 485.45% upside.
• Williams Companies received a Neutral consensus from analysts, with an average 1-year price target of $43.86, implying a potential 177.42% upside.
• As per analysts' assessments, Kinder Morgan is favoring an Neutral trajectory, with an average 1-year price target of $22.5, suggesting a potential 42.31% upside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for ONEOK, Williams Companies and Kinder Morgan are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Energy Transfer ranks highest in revenue growth among its peers. It has the highest gross profit margin. However, it has the lowest return on equity.

Delving into Energy Transfer's Background

Energy Transfer owns a large platform of crude oil, natural gas, and natural gas liquid assets primarily in Texas and the U.S. midcontinent region. It also has gathering and processing facilities, one of the largest fractionation facilities in the U.S., and fuel distribution. Energy Transfer also owns the Lake Charles gas liquefaction facility. It combined its publicly traded limited and general partnerships in October 2018.

Energy Transfer: A Financial Overview

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Energy Transfer's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 13.15%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 5.7%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Energy Transfer's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.37%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Energy Transfer's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.0%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.7.

To track all earnings releases for Energy Transfer visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.