Shares of Energy Transfer (ET) slipped in after-hours trading after the natural gas pipeline company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at $0.29, which missed analysts’ consensus estimate of $0.37 per share. Interestingly, ET has only beaten estimates twice during the past nine quarters.
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Furthermore, sales decreased by 4.8% year-over-year, with revenue hitting $19.54 billion. This missed analysts’ expectations of $21.41 billion. ET also announced a $0.325 per share dividend, which equates to a 6.4% 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.
Energy Transfer’s Guidance for 2025
Looking forward, management has provided the following guidance for 2025:
- FY25 adjusted EBITDA between $16.1 billion and $16.5 billion versus analysts’ consensus estimate of $16.37 billion
- Growth capital expenditures of approximately $5 billion
- Maintenance capital expenditures of approximately $1.1 billion
As you can see, guidance was worse than expected for EBITDA at the midpoint of $16.3 billion, which is likely what contributed to the stock’s after-hours move.
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 51% rally in its share price over the past year, the average ET price target of $22.67 per share implies 14.38% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
