Western Midstream's Earnings: A Preview

Western Midstream WES is gearing up to announce its quarterly earnings on Wednesday, 2024-11-06. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Western Midstream will report an earnings per share (EPS) of $0.83.

Investors in Western Midstream are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Overview of Past Earnings

The company's EPS beat by $0.09 in the last quarter, leading to a 1.13% increase in the share price on the following day.

Here's a look at Western Midstream's past performance and the resulting price change:

Performance of Western Midstream Shares

Shares of Western Midstream were trading at $36.81 as of November 01. Over the last 52-week period, shares are up 34.1%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Western Midstream

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Western Midstream.

Analysts have given Western Midstream a total of 6 ratings, with the consensus rating being Neutral. The average one-year price target is $40.0, indicating a potential 8.67% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Plains All American, DT Midstream and Antero Midstream, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• As per analysts' assessments, Plains All American is favoring an Neutral trajectory, with an average 1-year price target of $19.0, suggesting a potential 48.38% downside.
• DT Midstream is maintaining an Neutral status according to analysts, with an average 1-year price target of $88.14, indicating a potential 139.45% upside.
• The prevailing sentiment among analysts is an Underperform trajectory for Antero Midstream, with an average 1-year price target of $16.0, implying a potential 56.53% downside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Plains All American, DT Midstream and Antero Midstream are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Western Midstream ranks in the top quartile for Revenue Growth and Gross Profit among its peers. However, it ranks in the bottom quartile for Return on Equity.

Unveiling the Story Behind Western Midstream

Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma), North-central Pennsylvania and Texas.

Western Midstream: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining Western Midstream's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 22.67% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Net Margin: Western Midstream's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 40.84%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Western Midstream's ROE stands out, surpassing industry averages. With an impressive ROE of 11.34%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Western Midstream's ROA excels beyond industry benchmarks, reaching 3.03%. This signifies efficient management of assets and strong financial health.

Debt Management: Western Midstream's debt-to-equity ratio stands notably higher than the industry average, reaching 2.18. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Western Midstream visit their earnings calendar on our site.

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