Diamondback Vitality (FANG) got here out with quarterly earnings of $3.64 per share, beating the Zacks Consensus Estimate of $3.26 per share. This compares to earnings of $4.74 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 11.66%. 1 / 4 in the past, it was anticipated that this power exploration and manufacturing firm would publish earnings of $3.80 per share when it truly produced earnings of $3.38, delivering a shock of -11.05%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates thrice.
Diamondback
The sustainability of the inventory’s rapid value motion primarily based on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
Diamondback shares have misplaced about 4.7% for the reason that starting of the yr versus the S&P 500’s acquire of two.2%.
What’s Subsequent for Diamondback?
Whereas Diamondback has underperformed the market to date this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a powerful monitor document of harnessing the ability of earnings estimate revisions.
Forward of this earnings release, the estimate revisions development for Diamondback: blended. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out according to the market within the close to future. You may see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will likely be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $3.91 on $3.56 billion in revenues for the approaching quarter and $15.67 on $14.99 billion in revenues for the present fiscal yr.
Traders must be conscious of the truth that the outlook for the trade can have a fabric influence on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Oil and Fuel – Exploration and Manufacturing – United States is at the moment within the prime 20% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Gulfport Vitality (GPOR), one other inventory in the identical trade, has but to report outcomes for the quarter ended December 2024. The outcomes are anticipated to be launched on February 25.
This pure fuel producer is anticipated to publish quarterly earnings of $3.90 per share in its upcoming report, which represents a year-over-year change of +25.8%. The consensus EPS estimate for the quarter has been revised 1.3% larger over the past 30 days to the present degree.
Gulfport Vitality’s revenues are anticipated to be $324.54 million, down 33.7% from the year-ago quarter.
Ought to You Spend money on Diamondback Vitality, Inc. (FANG)?
Earlier than you spend money on Diamondback Vitality, Inc. (FANG), need to know the perfect shares to purchase for the following 30 days? Try Zacks Funding Analysis for our free report on the 7 best stocks to purchase.
Zacks Funding Analysis has been dedicated to offering traders with instruments and impartial analysis since 1978. For greater than 1 / 4 century, the Zacks Rank stock-rating system has greater than doubled the S&P 500 with a median acquire of +24.08% per yr. (These returns cowl a interval from January 1, 1988 by Might 6, 2024.)
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
