Diamondback Energy, Inc.: Upcoming Q3 Earnings Anticipation
Midland, Texas-based Diamondback Energy, Inc. (FANG) stands as an independent oil and gas entity. With a market capitalization of $32.8 billion, the company mainly engages in acquiring, developing, and exploring unconventional oil and natural gas reserves in the Permian Basin, one of the top shale regions in the United States. Fiscal Q3 earnings results are expected to be announced after the market closes on Monday, Nov. 4.
Profit Expectations and Historical Performance
As the announcement approaches, analysts forecast the company will report a profit of $4.14 per share, reflecting a decline of 25.6% from the $5.49 per share recorded in the same quarter of the previous year. Historically, Diamondback Energy has outperformed Wall Street’s earnings estimates for the last four quarters. In the prior quarter, FANG exceeded expectations by 1.4%.
Future Earnings Forecast and Growth
For fiscal 2024, analysts predict that FANG will achieve an EPS of $17.46, down 3.1% compared to $18.01 in fiscal 2023. Looking further ahead to fiscal 2025, EPS is anticipated to increase by 6.1% year-over-year, reaching $18.52.
Stock Performance and Market Comparison
Over the past 52 weeks, FANG’s shares have risen 8.2%, which falls short of the S&P 500 Index’s ($SPX) impressive 36% gain. However, the stock has performed better than the Energy Select Sector SPDR Fund (XLE), which has seen a 2% decline during the same timeframe.
Market Reactions and Analyst Ratings
Shares of Diamondback Energy increased by 2.4% after its Q2 earnings report on Aug. 5, buoyed by a healthier production outlook and improved operational efficiencies. The company raised its full-year production guidance by roughly 4,000 barrels per day and achieved a Q2 production growth of 5.5%, exceeding industry forecasts. With adjusted earnings per share of $4.52 and revenue of $2.5 billion, both metrics beat analyst expectations, fueling a positive response in stock prices. However, in September, the stock struggled following a 7.3% drop in crude oil prices, which were affected by concerns regarding rising supply and muted global demand. Furthermore, new investor stock sales related to the company’s $26 billion merger with Endeavor Energy Resources added pressure on share prices.
Currently, analysts exhibit optimism towards FANG, assigning a “Strong Buy” consensus rating. Among 26 analysts monitoring the stock, there are 19 “Strong Buys,” three “Moderate Buys,” and four “Holds.” FANG is presently trading below the average analyst price target of $220.92.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
