Equities research analysts at Scotiabank have revised their earnings per share estimates for APA Corporation for the fiscal year 2027. In a research note released on March 5, 2024, analyst P. Cheng lowered the forecast from $1.65 to $1.50 per share. This adjustment comes as the consensus estimate for APA’s earnings for the current fiscal year stands at $4.03 per share.
The company recently disclosed its quarterly earnings on February 25, 2024, reporting earnings per share of $0.91. This figure surpassed analysts’ expectations, which had predicted earnings of $0.62, marking a significant beat of $0.29. Despite this positive result, APA’s revenue for the quarter was $1.99 billion, a decline of 26.6% year-over-year, compared to analyst estimates of $1.89 billion.
Stock Performance and Market Outlook
Shares of APA opened at $32.68 on Friday, reflecting a minor increase of 0.9%. The stock has experienced fluctuations over the past year, with a 12-month low of $13.58 and a high of $33.42. APA’s financial metrics indicate a quick ratio and current ratio of 0.82, and a debt-to-equity ratio of 0.61. The company boasts a market capitalization of $11.54 billion and a price-to-earnings (P/E) ratio of 8.19.
Institutional investors have shown increasing interest in APA, with several hedge funds adjusting their holdings in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position by 6.6%, now owning 33,300 shares valued at approximately $700,000. Similarly, NewEdge Advisors LLC increased its stake by 49.6%, acquiring an additional 3,578 shares during this period.
Notably, Goldman Sachs Group Inc. expanded its holdings in APA by 43.3%, now controlling 2,668,505 shares worth around $56.09 million. Other firms, including Focus Partners Wealth and the Teacher Retirement System of Texas, also increased their stakes, highlighting a growing confidence among institutional investors. Currently, institutional investors hold 83.01% of APA’s stock.
Dividend Declaration and Company Profile
APA Corporation has announced a quarterly dividend of $0.25, set to be paid on May 22, 2024, to shareholders of record as of April 22, 2024. This results in an annualized dividend of $1.00, reflecting a yield of 3.1% with a payout ratio of 25.06%.
Founded as an independent exploration and production company, APA operates primarily in the United States, Egypt, and the North Sea. The firm specializes in the acquisition, development, and production of oil and natural gas resources. Its largest operation is located in the Permian Basin of West Texas and southeastern New Mexico, where it focuses on oil drilling and production. As the market continues to evolve, APA’s integrated approach aims to leverage geological and geophysical expertise to enhance its resource development capabilities.
