Yahoo Finance Analysts Expect EQT Corporation (NYSE:EQT) To Breakeven Soon
EQT Corporation (NYSE:EQT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. EQT Corporation operates as a natural gas production company in the United States. With the latest financial year loss of US$967m and a trailing-twelve-month loss of US$2.9b, the US$8.2b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which EQT will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for EQT
Consensus from 14 of the American Oil and Gas analysts is that EQT is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$755m in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 56% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for EQT given that this is a high-level summary, but, keep in mind that generally an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we would like to bring into light with EQT is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in EQT's case is 75%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on EQT, so if you are interested in understanding the company at a deeper level, take a look at EQT's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Valuation: What is EQT worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether EQT is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EQT’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
