Gartner Q1 Earnings: Revenue in Line, EPS Beats Expectations, Analysts Lower Price Target to $305

Gartner's quarterly report showed a 32% selloff in shares, with a 2.2% higher-than-expected EPS of $3.11. Analysts forecast a 35% drop in EPS to $10.82 in 2025, with a reduced average price target of $305, a 34% drop from the previous estimate. The analysts' forecasts have become more negative after the latest results, with a wide range of price targets from $225 to $457.

Kinetik Holdings Inc., a significant player in the energy infrastructure sector, reported its second-quarter 2025 earnings with an earnings per share (EPS) of $0.33, surpassing the forecasted $0.25 by 32%. While the company exceeded EPS expectations, revenue fell short at $426.74 million against an anticipated $436.91 million. The stock price rose 2.96% in pre-market trading, reflecting investor optimism despite the revenue miss [1].

The company’s stock price increased by 2.96% in pre-market trading, reaching $42.77, suggesting investor confidence in the company’s earnings performance and strategic direction, despite the revenue shortfall. The stock currently trades near its 52-week low of $39.33, significantly below its high of $67.60 [1].

Kinetik Holdings revised its 2025 adjusted EBITDA guidance to $1,030-$1,090 million, a reduction of 5%. Despite this, the company expects strong performance in Q4 2025, with annualized adjusted EBITDA projected at $1,200 million. The company is also focusing on expanding its infrastructure and exploring new growth opportunities, including potential expansions and behind-the-meter power generation [1].

Analysts have become more negative following the latest results, with forecasts indicating a 35% drop in EPS to $10.82 in 2025, and a reduced average price target of $305, a 34% drop from the previous estimate. The analysts’ forecasts now range from $225 to $457, reflecting a wide range of expectations [2].

The company’s strategic initiatives and financial metrics indicate resilience and growth potential. Kinetik Holdings continues to expand its infrastructure, particularly in the Delaware Basin, and maintains a strong position in the sour gas treating market. Despite revenue falling short, the company’s strategic initiatives and financial metrics indicate resilience and growth potential [1].

References:
[1] https://au.investing.com/news/transcripts/earnings-call-transcript-kinetik-holdings-beats-q2-2025-eps-forecast-93CH-3966444
[2] https://au.investing.com/news/transcripts/earnings-call-transcript-kinetik-holdings-beats-q2-2025-eps-forecast-93CH-3966444