APA Corporation (NASDAQ:APA) reported a slight miss in EPS but exceeded revenue expectations in Q3 2024.
The company’s financial ratios indicate a low valuation and solid financial stability despite fluctuating earnings.
APA has consistently outperformed consensus revenue estimates, showcasing strong operational performance.
APA Corporation, listed on NASDAQ as APA, is a key player in the oil and natural gas exploration and production sector. Operating in the United States, Egypt, the United Kingdom, and offshore Suriname, APA is part of the Zacks Oil and Gas – Exploration and Production – United States industry. The company recently reported its third-quarter 2024 earnings, providing insights into its financial health and strategic direction.
On November 7, 2024, APA reported earnings per share (EPS) of $1, slightly below the estimated $1.01. This represents a 2.91% negative surprise compared to the Zacks Consensus Estimate of $1.03. The EPS also marks a decline from the $1.33 per share earned in the same quarter last year. Despite this, APA has shown resilience in previous quarters, exceeding expectations with a positive surprise of 23.16% in the prior quarter.
APA’s revenue for the quarter ending September 2024 was $2.54 billion, surpassing the Zacks Consensus Estimate by 11.71%. This figure also reflects an increase from the $2.31 billion reported in the same period last year. The company has consistently outperformed consensus revenue estimates in three of the last four quarters, highlighting its strong operational performance.
Financially, APA maintains a price-to-earnings (P/E) ratio of approximately 4.40, indicating a low valuation relative to its earnings. The price-to-sales ratio is 0.88, suggesting the stock trades at less than one times its sales. Additionally, the enterprise value to sales ratio is 1.57, and the enterprise value to operating cash flow ratio is 3.99, reflecting the company’s valuation in relation to its sales and cash flow.
APA’s financial stability is further supported by an earnings yield of 22.75%, offering a substantial return on its earnings relative to its share price. The debt-to-equity ratio stands at 1.03, indicating slightly more debt than equity, while a current ratio of 1.82 suggests a good level of liquidity to cover short-term liabilities. These metrics underscore APA’s solid financial foundation amidst fluctuating earnings.
