Diamondback Energy’s Upcoming Earnings: What to Watch For
Anticipated Earnings Report and Market Expectations
Diamondback Energy, Inc. (FANG), based in Midland, Texas, is engaged in acquiring, developing, exploring, and exploiting unconventional onshore oil and natural gas reserves in the Permian Basin. With a market capitalization of $51.6 billion, the company focuses its efforts on the Spraberry, Wolfcamp, and Bone Spring formations located in the Midland and Delaware Basins. Investors are keenly awaiting the fiscal fourth-quarter earnings announcement for 2024, which is set for after the market closes on Monday, February 24.
What Analysts Predict
Leading up to the earnings release, analysts are estimating that FANG will report earnings of $3.33 per share on a diluted basis. This figure marks a 29.8% decrease compared to $4.74 per share from the same quarter last year. FANG has managed to surpass consensus estimates in three of the last four quarters, with only one miss.
Yearly Earnings Outlook
Looking at the entire fiscal year, analysts project an earnings per share (EPS) of $15.58 for FANG, which is a decline of 13.5% compared to last year’s $18.01. Additionally, EPS is anticipated to drop by 5.1% year-over-year to $14.78 in fiscal 2025.
A Closer Look at FANG’s Stock Performance
Over the past year, FANG stock has lagged behind the S&P 500’s gain of 25.8%, seeing only a 16.6% increase itself. However, it has outperformed the Energy Select Sector SPDR Fund’s (XLE) gain of 14.3% during the same period.
Market Challenges Impacting Performance
The company’s stock struggles can be attributed to navigating excess supply in the market amid softened demand. Factors influencing this include reduced oil consumption in China due to an economic slowdown and ongoing geopolitical tensions that affect oil pricing.
Recent Financial Performance and Analyst Sentiment
On November 4, FANG shares rose over 2% after reporting its Q3 results. The adjusted EPS of $3.38 fell short of Wall Street’s expectations of $3.80, while total revenue reached $2.7 billion, exceeding forecasts of $2.5 billion.
Overall, the consensus among analysts regarding FANG stock remains positive, with a “Strong Buy” rating being predominant. Out of 29 analysts, 22 recommend a “Strong Buy,” three endorse a “Moderate Buy,” and four suggest holding. The average price target set by analysts for FANG stands at $213.93, suggesting a potential increase of 21.1% from current prices.
On the date of publication, Neha Panjwani 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.
