Hess Midstream Partners (NYSE:HESM) Posts Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Hess Midstream Partners beat quarterly estimates: EPS was $0.77, topping the $0.72 consensus, while revenue reached $410.1 million versus expectations of $404.67 million. However, revenue declined 2.6% year over year.
• The company raised its quarterly dividend to $0.7985 per share, equivalent to an annualized $3.19 dividend and a 9.8% yield, though its payout ratio stands at 110%.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $34.00. Shares recently traded at $32.70 after rising 1.4%.

Hess Midstream Partners (NYSE:HESM - Get Free Report) posted its quarterly earnings data on Friday. The company reported $0.77 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.05, FiscalAI reports. The company had revenue of $410.10 million for the quarter, compared to analyst estimates of $404.67 million. Hess Midstream Partners had a return on equity of 92.18% and a net margin of 23.23%. The firm's quarterly revenue was down 2.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.75 earnings per share.

Hess Midstream Partners Trading Up 1.4%

HESM stock traded up $0.45 during mid-day trading on Friday, reaching $32.70. The company's stock had a trading volume of 3,513,762 shares, compared to its average volume of 1,722,630. Hess Midstream Partners has a 12 month low of $29.52 and a 12 month high of $41.44. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 9.39. The business's 50 day moving average price is $36.65 and its 200 day moving average price is $37.95. The company has a market cap of $6.74 billion, a price-to-earnings ratio of 11.28 and a beta of 0.58.

Hess Midstream Partners Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Thursday, November 5th will be issued a $0.7985 dividend. The ex-dividend date is Thursday, November 5th. This is an increase from Hess Midstream Partners's previous quarterly dividend of $0.7888. This represents a $3.19 dividend on an annualized basis and a yield of 9.8%. Hess Midstream Partners's dividend payout ratio is presently 110.00%.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on HESM shares. JPMorgan Chase & Co. lowered shares of Hess Midstream Partners from a "neutral" rating to an "underweight" rating and set a $39.00 price target for the company. in a report on Friday, October 2nd. Weiss Ratings lowered shares of Hess Midstream Partners from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, October 22nd. Barclays set a $32.00 price objective on shares of Hess Midstream Partners in a research report on Friday, October 23rd. Raymond James Financial raised shares of Hess Midstream Partners from a "market perform" rating to an "outperform" rating and set a $32.00 target price for the company in a research note on Friday, October 23rd. Finally, Morgan Stanley dropped their target price on shares of Hess Midstream Partners from $39.00 to $30.00 and set an "underweight" rating on the stock in a report on Tuesday, October 13th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $34.00.

About Hess Midstream Partners

Hess Midstream Partners LP NYSE: HESM is a midstream energy company that owns and operates infrastructure supporting oil and gas production, primarily in the Bakken and Three Forks shale plays of North Dakota. The company provides essential services between the wellhead and downstream markets rather than exploring for or producing hydrocarbons itself.

Its operations include gathering, processing, storage and transportation services for crude oil, natural gas and natural gas liquids. Hess Midstream also provides produced-water gathering and disposal services, helping manage water generated during oil and gas production.

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