YPF Sociedad Anónima (NYSE:YPF) Issues Quarterly Earnings Results, Beats Estimates By $1.08 EPS

YPF Sociedad Anónima (NYSE:YPF) announced its quarterly earnings results on Thursday. The oil and gas exploration company reported $3.00 earnings per share for the quarter, beating the consensus estimate of $1.92 by $1.08, Zacks reports. The business had revenue of $6.56 billion for the quarter, compared to analysts’ expectations of $5.57 billion. YPF Sociedad Anónima had a net margin of 9.42% and a return on equity of 17.23%.

Here are the key takeaways from YPF Sociedad Anónima’s conference call:

• Strong Q3 financial performance: Revenue rose 41% year over year to $6.6 billion, while adjusted EBITDA increased 84% to $2.5 billion, supported by shale growth, refinery activity, cost efficiencies, and favorable pricing.
• Shale production continued to accelerate. Shale oil output reached 224,000 barrels per day, up 32% year over year, with October production exceeding 245,000 barrels per day; management remains on track for roughly 250,000 barrels per day by year-end and expects significantly higher 2027 production.
• Cash generation and the balance sheet improved materially. Free cash flow was approximately $900 million, liquidity reached a record $3.7 billion, and net leverage fell to 0.8 times; a new $1.2 billion 2035 bond also enabled YPF to refinance nearer-term maturities at its lowest-ever spread.
• YPF advanced several long-term growth initiatives, including the VMOS export system, three proposed North Hub RIGI projects, the Argentina LNG project, and the acquisition of the remaining 25% of YPF Luz, which adds a fully consolidated power platform with dollar-linked revenue.
• Near-term operating and market risks remain. Fuel sales declined 4% sequentially, refinery throughput is expected to normalize during additional fourth-quarter maintenance, domestic fuel prices remain below import parity under the buffer policy, and export economics face uncertainty from elevated freight costs and volatile oil differentials.

YPF Sociedad Anónima Stock Performance

Shares of NYSE YPF traded down $0.90 during midday trading on Friday, reaching $46.91. The company’s stock had a trading volume of 1,120,897 shares, compared to its average volume of 1,057,556. YPF Sociedad Anónima has a 12-month low of $32.74 and a 12-month high of $57.87. The firm has a 50 day moving average price of $51.71 and a 200-day moving average price of $46.30. The stock has a market capitalization of $18.45 billion, a P/E ratio of 8.64 and a beta of 1.22. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.24 and a quick ratio of 0.72.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Wall Street Zen upgraded YPF Sociedad Anónima from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 18th. JPMorgan Chase & Co. dropped their price objective on YPF Sociedad Anónima from $66.00 to $60.50 and set an “overweight” rating on the stock in a research note on Thursday. Weiss Ratings downgraded shares of YPF Sociedad Anónima from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday. HSBC upgraded shares of YPF Sociedad Anónima from a “hold” rating to a “buy” rating and set a $60.00 target price for the company in a research note on Monday, August 17th. Finally, UBS Group upped their target price on shares of YPF Sociedad Anónima from $48.00 to $55.00 and gave the stock a “neutral” rating in a research note on Thursday, August 27th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, YPF Sociedad Anónima presently has a consensus rating of “Moderate Buy” and an average target price of $58.50.

About YPF Sociedad Anónima

YPF Sociedad Anónima is an integrated energy company based in Argentina and one of the country’s principal oil and gas producers. The company explores for, develops and produces crude oil and natural gas, with operations that include both conventional and unconventional resources. YPF is also a major participant in the development of the Vaca Muerta shale formation in the Neuquén Basin.

Through its downstream operations, YPF refines crude oil and markets fuels, lubricants and other petroleum products.