## DT Midstream Earnings Preview: What to Watch for on October 29th
Investors are gearing up for DT Midstream’s (DTM) upcoming quarterly earnings release on Tuesday, October 29th, 2024. While analysts anticipate an earnings per share (EPS) of $0.92, the real focus will be on the company’s guidance for the next quarter.
Past Performance and the Importance of Guidance
DT Midstream’s recent earnings history suggests a strong track record. In the previous quarter, the company exceeded EPS estimates by $0.05, resulting in a 0.95% increase in share price the following day. However, it’s important to remember that it’s not always an earnings beat or miss that drives stock prices; guidance, or the company’s outlook for the future, often plays a larger role.
Here’s a quick snapshot of DT Midstream’s past performance:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 0.93 | 0.98 | 1.0% |
| Q1 2024 | 0.95 | 0.99 | -1.0% |
| Q4 2023 | 0.92 | 1.24 | 4.0% |
| Q3 2023 | 0.90 | 0.94 | 4.0% |
Analyst Sentiment and Price Targets
Staying informed about market expectations is crucial for investors. Analyst sentiment provides valuable insights into the overall outlook for a company. DT Midstream has received a total of 7 ratings from analysts, with the consensus being Neutral. The average one-year price target is $82.71, suggesting a potential 5.36% downside from current levels.
Comparing DT Midstream with its Peers
To gain a more comprehensive understanding of DT Midstream’s position within the industry, it’s helpful to compare it with its peers. Here’s a look at the analyst ratings and average one-year price targets for three other prominent midstream companies:
*
Antero Midstream:
Analyst consensus is Underperform, with an average 1-year price target of $16.0, indicating a potential 81.69% downside.*
EnLink Midstream:
Analyst consensus is Neutral, with an average 1-year price target of $15.57, suggesting a potential 82.18% downside.*
Plains All American:
Analyst consensus is Neutral, with an average 1-year price target of $19.0, indicating a potential 78.26% downside.Peer Analysis: A Deeper Dive
The following table provides a comprehensive comparison of key financial metrics for these companies, highlighting their relative positions within the industry.
| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| DT Midstream | Neutral | 8.93% | $191M | 2.30% |
| Antero Midstream | Underperform | 4.17% | $175.81M | 4.02% |
| EnLink Midstream | Neutral | 2.18% | $326.70M | 4.20% |
| Plains All American | Neutral | 11.47% | $468M | 1.75% |
Key Takeaways:
* DT Midstream falls in the middle of the pack in terms of consensus rating among its peers.
* The company lags behind its peers in revenue growth and gross profit, and its return on equity is also below average.
DT Midstream: A Financial Overview
DT Midstream Inc. is a leading player in the natural gas midstream sector. The company’s business spans interstate and intrastate pipelines, storage and gathering systems, and related compression and treatment facilities. Here’s a closer look at DT Midstream’s key financial metrics:
*
Market Capitalization:
DT Midstream’s market capitalization is relatively small compared to industry averages, presenting unique challenges for the company.*
Revenue Growth:
DT Midstream’s revenue growth is impressive, reaching 8.93% as of June 30, 2024. This outpaces the average growth rate for its peers.*
Net Margin:
DT Midstream boasts a strong net margin of 39.34%, demonstrating strong profitability and effective cost control.*
Return on Equity (ROE):
DT Midstream’s ROE is below industry standards at 2.3%, suggesting challenges in efficiently utilizing equity capital.*
Return on Assets (ROA):
DT Midstream’s ROA is also below industry standards, indicating difficulties in maximizing asset utilization.*
Debt Management:
DT Midstream’s debt-to-equity ratio is below average at 0.76, demonstrating a healthy balance between debt and equity financing.Looking Ahead:
DT Midstream’s upcoming earnings release is a key event for investors. The company’s financial performance and future guidance will be closely watched. The insights provided in this article will help investors approach the earnings announcement with a more informed perspective.
