Targa Resources TRGP is set to give its latest quarterly earnings report on Thursday, 2025-08-07. Here's what investors need to know before the announcement.
Analysts estimate that Targa Resources will report an earnings per share (EPS) of $1.95.
The market awaits Targa Resources's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Historical Earnings Performance
In the previous earnings release, the company missed EPS by $1.07, leading to a 0.29% drop in the share price the following trading session.
Here's a look at Targa Resources's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.98 | 1.83 | 1.55 | 1.24 |
| EPS Actual | 0.91 | 1.44 | 1.75 | 1.33 |
| Price Change % | -0.0% | -2.0% | 5.0% | -4.0% |
Performance of Targa Resources Shares
Shares of Targa Resources were trading at $163.63 as of August 05. Over the last 52-week period, shares are up 20.68%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Targa Resources
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Targa Resources.
The consensus rating for Targa Resources is Outperform, derived from 12 analyst ratings. An average one-year price target of $200.92 implies a potential 22.79% upside.
Analyzing Analyst Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of ONEOK, MPLX and Cheniere Energy, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for ONEOK, with an average 1-year price target of $96.14, suggesting a potential 41.25% downside.
- Analysts currently favor an Outperform trajectory for MPLX, with an average 1-year price target of $52.5, suggesting a potential 67.92% downside.
- Analysts currently favor an Outperform trajectory for Cheniere Energy, with an average 1-year price target of $269.8, suggesting a potential 64.88% upside.
Summary of Peers Analysis
The peer analysis summary provides a snapshot of key metrics for ONEOK, MPLX and Cheniere Energy, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Targa Resources | Outperform | -0.02% | $936.10M | 7.93% |
| ONEOK | Outperform | -1.94% | $2.01B | 3.89% |
| MPLX | Outperform | 10.87% | $1.27B | 8.15% |
| Cheniere Energy | Outperform | 28.00% | $1.09B | 6.26% |
Key Takeaway:
Targa Resources ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.
Unveiling the Story Behind Targa Resources
Targa Resources is a midstream firm that primarily operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal. The Grand Prix natural gas liquids pipeline is another important asset.
Understanding the Numbers: Targa Resources's Finances
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Targa Resources's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -0.02%. This indicates a decrease in the company's 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: Targa Resources's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 4.38%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.93%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Targa Resources's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.88%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Targa Resources's debt-to-equity ratio is notably higher than the industry average. With a ratio of 6.61, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for Targa Resources visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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