Preview: Hess Midstream's Earnings

Hess Midstream (NYSE:HESM) is set to give its latest quarterly earnings report on Monday, 2025-11-03. Here's what investors need to know before the announcement.

Analysts estimate that Hess Midstream will report an earnings per share (EPS) of $0.71.

The market awaits Hess Midstream'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.

Overview of Past Earnings

In the previous earnings release, the company beat EPS by $0.08, leading to a 1.99% increase in the share price the following trading session.

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

Quarter Q2 2025 Q1 2025 Q4 2024 Q3 2024
EPS Estimate 0.66 0.69 0.68 0.66
EPS Actual 0.74 0.65 0.68 0.63
Price Change % 2.00 -1.00 1.00 0.00

Performance of Hess Midstream Shares

Shares of Hess Midstream were trading at $34.14 as of October 30. Over the last 52-week period, shares are up 0.03%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about Hess Midstream

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Hess Midstream.

A total of 7 analyst ratings have been received for Hess Midstream, with the consensus rating being Neutral. The average one-year price target stands at $39.57, suggesting a potential 15.91% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of South Bow, Frontline and Plains GP Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Neutral trajectory for South Bow, with an average 1-year price target of $27.5, suggesting a potential 19.45% downside.
  • Analysts currently favor an Buy trajectory for Frontline, with an average 1-year price target of $27.0, suggesting a potential 20.91% downside.
  • Analysts currently favor an Neutral trajectory for Plains GP Holdings, with an average 1-year price target of $19.75, suggesting a potential 42.15% downside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for South Bow, Frontline and Plains GP Holdings, 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
Hess Midstream Neutral 13.41% $361.70M 14.61%
South Bow Neutral -5.42% $382M 3.67%
Frontline Buy -13.66% $143.53M 3.30%
Plains GP Holdings Neutral -16.58% $649M 2.21%

Key Takeaway:

Hess Midstream ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Get to Know Hess Midstream Better

Hess Midstream LP owns, operates, develops, and acquires a diverse set of midstream assets and provides fee-based services to Hess and third-party customers. It conducts its business through three operating segments: gathering, processing and storage, and terminaling and exporting. The company derives the maximum revenue from the gathering segment. Its gathering segment consists of the following assets namely Natural Gas Gathering and Compression; Crude Oil Gathering and Produced Water Gathering and Disposal.

Hess Midstream: Financial Performance Dissected

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

Positive Revenue Trend: Examining Hess Midstream's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.41% as of 30 June, 2025, showcasing a substantial increase in 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: Hess Midstream's net margin is impressive, surpassing industry averages. With a net margin of 21.84%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Hess Midstream's ROE stands out, surpassing industry averages. With an impressive ROE of 14.61%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Hess Midstream's ROA stands out, surpassing industry averages. With an impressive ROA of 2.08%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Hess Midstream's debt-to-equity ratio stands notably higher than the industry average, reaching 5.85. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Hess Midstream 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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