Shares of Energy Transfer (ET) gained in after-hours trading after the natural gas pipeline company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.35, which was in line with estimates. Interestingly, ET has only beaten estimates twice during the past nine quarters, as pictured below.
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Furthermore, sales increased by 13.2% year-over-year, with revenue hitting $20.73 billion. This missed analysts’ expectations of $21.5 billion. ET also announced a $0.32 per share dividend, which equates to an 8.13% annual yield. However, it’s worth noting that the current yield is near the low end of its historical range, which indicates that the stock is relatively overvalued compared to the past.
Looking forward, management now expects adjusted EBITDA for FY 2024 to be between $15.3 billion and $15.5 billion. For reference, the previous range was between $15.0 billion and $15.3 billion.
Is ET a Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ET stock based on eight Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 33% rally in its share price over the past year, the average ET price target of $19.50 per share implies 24.84% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
