Hess Midstream HESM is gearing up to announce its quarterly earnings on Wednesday, 2025-04-30. Here’s a quick overview of what investors should know before the release.
Analysts are estimating that Hess Midstream will report an earnings per share (EPS) of $0.70.
Anticipation surrounds Hess Midstream’s announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings Track Record
In the previous earnings release, the company missed EPS by $0.00, leading to a 0.5% increase in the share price the following trading session.
Here’s a look at Hess Midstream’s past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.68 | 0.66 | 0.63 | 0.63 |
| EPS Actual | 0.68 | 0.63 | 0.59 | 0.59 |
| Price Change % | 1.0% | -0.0% | -1.0% | -0.0% |
Tracking Hess Midstream’s Stock Performance
Shares of Hess Midstream were trading at $38.9 as of April 28. Over the last 52-week period, shares are up 15.2%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Hess Midstream
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Hess Midstream.
Hess Midstream has received a total of 4 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $44.5, the consensus suggests a potential 14.4% upside.
Peer Ratings Overview
The following analysis focuses on the analyst ratings and average 1-year price targets of Plains GP Holdings, Frontline and Scorpio Tankers, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Plains GP Holdings, with an average 1-year price target of $20.5, suggesting a potential 47.3% downside.
- Analysts currently favor an Outperform trajectory for Frontline, with an average 1-year price target of $20.0, suggesting a potential 48.59% downside.
- Analysts currently favor an Buy trajectory for Scorpio Tankers, with an average 1-year price target of $61.33, suggesting a potential 57.66% upside.
Peers Comparative Analysis Summary
In the peer analysis summary, key metrics for Plains GP Holdings, Frontline and Scorpio Tankers are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Hess Midstream | Neutral | 11.02% | $343.70M | 13.26% |
| Plains GP Holdings | Neutral | -2.33% | $918M | -0.78% |
| Frontline | Outperform | 2.56% | $113.58M | 2.85% |
| Scorpio Tankers | Buy | -39.35% | $66.11M | 2.40% |
Key Takeaway:
Hess Midstream ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.
Unveiling the Story Behind Hess Midstream
Hess Midstream LP owns, operates, develops, and acquires a diverse set of midstream assets and provides fee-based services to Hess and third-party customers. It conducts its business through three operating segments: gathering, processing and storage, and terminaling and exporting. The company derives the maximum revenue from the gathering segment. Its gathering segment consists of the following assets namely Natural Gas Gathering and Compression; Crude Oil Gathering and Produced Water Gathering and Disposal.
A Deep Dive into Hess Midstream’s Financials
Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Hess Midstream’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.02% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.
Net Margin: Hess Midstream’s net margin is impressive, surpassing industry averages. With a net margin of 17.82%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company’s ROE is a standout performer, exceeding industry averages. With an impressive ROE of 13.26%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Hess Midstream’s ROA stands out, surpassing industry averages. With an impressive ROA of 1.7%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a high debt-to-equity ratio of 6.54, Hess Midstream faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for Hess Midstream visit their earnings calendar on our site.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Add Comment