Houston, Texas-based Targa Resources Corp. (TRGP) owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets. Valued at a market cap of $37.1 billion, the company primarily generates revenue from gathering, compressing, treating, processing, transporting, and selling natural gas and natural gas liquids (NGLs). It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Thursday, Aug. 7.
Ahead of this event, analysts expect this energy company to report a profit of $1.93 per share, up 45.1% from $1.33 per share in the year-ago quarter. The company has topped Wall Street’s earnings estimates in two of the last four quarters, while missing on two other occasions. In Q1, TRGP’s EPS of $0.91 fell short of the forecasted figure by 55.4%.
For fiscal 2025, analysts expect TRGP to report a profit of $7.19 per share, representing a 25.3% increase from $5.74 per share in fiscal 2024. Furthermore, its EPS is expected to grow 35.5% year-over-year to $9.74 in fiscal 2026.
Shares of TRGP have rallied 25.7% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 13.6% return and the Energy Select Sector SPDR Fund’s (XLE) 8% decline over the same time frame.
On May 1, TRGP’s shares closed down 5% following its Q1 earnings release. The company’s revenue declined marginally year-over-year to $4.6 billion, primarily due to lower commodities sales and fell short of the consensus estimates by 13.2%. However, on the brighter side, its adjusted EBITDA advanced 22% year-over-year to a Q1 record of $1.2 billion. Moreover, its adjusted cash flow from operations improved 31.4% from the same period last year, reaching $970 million. Looking ahead, TRGP reaffirmed its fiscal 2025 adjusted EBITDA guidance of $4.7 billion to $4.9 billion.
Wall Street analysts are highly optimistic about TRGP’s stock, with an overall "Strong Buy" rating. Among 19 analysts covering the stock, 17 recommend "Strong Buy," one indicates a "Moderate Buy,” and one suggests a "Hold” rating. The mean price target for TRGP is $206.95, indicating a 20.9% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
