A Preview Of Targa Resources's Earnings

Targa Resources TRGP is set to give its latest quarterly earnings report on Thursday, 2025-05-01. Here's what investors need to know before the announcement.

Analysts estimate that Targa Resources will report an earnings per share (EPS) of $1.83.

The announcement from Targa Resources is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

Last quarter the company missed EPS by $0.39, which was followed by a 2.12% drop in the share price the next day.

Here's a look at Targa Resources's past performance and the resulting price change:

Tracking Targa Resources's Stock Performance

Shares of Targa Resources were trading at $177.11 as of April 29. Over the last 52-week period, shares are up 50.36%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on Targa Resources

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Targa Resources.

The consensus rating for Targa Resources is Outperform, based on 11 analyst ratings. With an average one-year price target of $219.73, there's a potential 24.06% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Cheniere Energy, MPLX and ONEOK, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Cheniere Energy, with an average 1-year price target of $253.75, suggesting a potential 43.27% upside.
• Analysts currently favor an Outperform trajectory for MPLX, with an average 1-year price target of $58.8, suggesting a potential 66.8% downside.
• Analysts currently favor an Neutral trajectory for ONEOK, with an average 1-year price target of $107.57, suggesting a potential 39.26% downside.

Overview of Peer Analysis

The peer analysis summary provides a snapshot of key metrics for Cheniere Energy, MPLX and ONEOK, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Targa Resources ranks in the middle among its peers for revenue growth. It is at the bottom for gross profit and return on equity.

Get to Know Targa Resources Better

Targa Resources is a midstream firm that primarily operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal. The Grand Prix natural gas liquids pipeline is another important asset.

Targa Resources: Financial Performance Dissected

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Positive Revenue Trend: Examining Targa Resources's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.91% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Targa Resources's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 7.39%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Targa Resources's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 12.6%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Targa Resources's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.46%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Targa Resources's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.5, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Targa Resources visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.