Here is a look at four companies set to report results after markets close on Wednesday.
Antero Resources
Independent oil and gas producer Antero Resources Corp. (NYSE: AR) is a major producer of natural gas liquids (NGLs) and natural gas in the Appalachian Basin. Over the past 12 months, the company’s share price has increased by more than 63%. Between January and early June, the stock soared by 300%. From then until early July, the stock plunged by 40%.
NGL prices are currently about 9% lower than a month ago but still almost 22% higher than a year ago. As demand from Europe for natural gas strengthens, Antero and its majority-owned Antero Midstream pipeline to the U.S. east coast should see revenues and profits rise.
Analysts are bullish on Antero stock. Of 16 brokerages covering the company, 11 have a Buy or Strong Buy rating and four rate the shares at Hold. At a recent price of around $33.10 a share, the upside potential based on a median price target of $50.50 is 52.6%. At the high price target of $64.00, the upside potential is almost 94%.
Third-quarter revenue is forecast at $1.98 billion, which would be down 10.2% sequentially but up 271% year over year. Analysts expect Antero to post EPS of $1.88, up 11.6% sequentially and up from $0.19 in the year-ago quarter. For the full fiscal 2022 year, EPS are forecast at $6.13, up 325.5% year over year, on sales of $6.88 billion, up 48.9%.
Antero stock trades at about 5.4 times expected 2022 earnings, 4.3 times estimated 2023 earnings of $7.68 per share and 5.0 times estimated 2024 earnings of $6.58 per share. The stock’s 52-week trading range is $15.38 to $48.80. The company does not pay a dividend, and total shareholder return for the past year was 63.3%.
EQT
EQT Corp. (NYSE: EQT) is an independent producer of natural gas with holdings of more than 1.7 million gross acres in the Marcellus shale play of Pennsylvania. Last month the company acquired upstream (approximately 90,000 acres in West Virginia) and midstream (95 miles of gathering pipeline) assets for a cash payment of $5.2 billion. EQT’s location near pipelines that deliver natural gas to liquefaction plants on the U.S. east coast has helped push the share price up by nearly 80% since late January.
Analysts are solidly bullish on the stock. Of 22 brokerages covering it, 19 have a Buy or Strong Buy rating and the others rate the shares at Hold. At a share price of around $38.30, the upside potential based on a median price target of $60.00 is 56.7%. At the high price target of $85.00, the upside potential is almost 122%.
Third-quarter revenue is forecast at $1.76 billion, down 30.4% sequentially but up from a loss of $1.46 billion in the year-ago quarter. Analysts expect EQT to post EPS of $1.05, up nearly 27% sequentially and up from $0.12 in the year-ago quarter. For the full fiscal 2022 year, EPS are forecast at $4.67, up about 408% year over year, on sales of $6.65 billion, up 117%.
EQT stock trades at 8.2 times expected 2022 earnings, 3.7 times estimated 2023 earnings of $10.41 per share, and 4.4 times estimated 2024 earnings of $8.69 per share. The stock’s 52-week range is $17.95 to $51.97. The company pays an annual dividend of $0.60 (yield of 1.42%), and total shareholder return for the past year was 81.4%.
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