Oil and gas producer APA Corporation (NASDAQ: APA) will be reporting results this Wednesday after market hours. Here’s what to look for.
APA Corporation beat analysts’ revenue expectations last quarter, reporting revenues of $1.87 billion, down 11.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported 132,001 oil production per day, down 10.6% year on year.
Is APA Corporation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting APA Corporation’s revenue to decline 2.8% year on year, a reversal from the 22.9% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. APA Corporation has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at APA Corporation’s peers in the mixed or offshore upstream e&p segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Solaris Energy Infrastructure delivered year-on-year revenue growth of 55.3%, beating analysts’ expectations by 6.8%, and Weatherford reported a revenue decline of 3.4%, topping estimates by 0.6%. Solaris Energy Infrastructure traded up 5.4% following the results while Weatherford was also up 1.4%.
Read our full analysis of Solaris Energy Infrastructure’s results here and Weatherford’s results here.
There has been positive sentiment among investors in the mixed or offshore upstream e&p segment, with share prices up 5.1% on average over the last month. APA Corporation is down 2.2% during the same time and is heading into earnings with an average analyst price target of $41.30 (compared to the current share price of $42.05).
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