Midland, Texas-based Diamondback Energy, Inc. (FANG) is an independent oil and gas company. With a market cap of $32.8 billion, it focuses on acquiring, developing, and exploring unconventional oil and natural gas reserves in the Permian Basin, one of the most prolific shale regions in the U.S. The company is expected to unveil its fiscal Q3 earnings results after the market closes on Monday, Nov. 4.
Before the event, analysts anticipated the oil company to report a profit of $4.14 per share, down 25.6% from $5.49 per share in the same quarter last year. However, the company has consistently surpassed Wall Street's earnings projections in the past four quarters. FANG exceeded the consensus estimate by a 1.4% margin in the last reported quarter.
For fiscal 2024, analysts expect FANG to report EPS of $17.46, down 3.1% from $18.01 in fiscal 2023. However, looking forward to fiscal 2025, EPS is expected to grow 6.1% year-over-year, reaching $18.52.
Over the past 52 weeks, FANG's shares have risen 8.2%, underperforming the S&P 500 Index's ($SPX) 36% gain. But the stock has outpaced the Energy Select Sector SPDR Fund's (XLE) 2% dip over the same period.
Shares of Diamondback Energy rose 2.4% following its Q2 earnings release on Aug. 5 due to a stronger-than-expected production outlook and operational efficiencies. The company raised its full-year production guidance by about 4,000 barrels per day and reported Q2 production growth of 5.5%, exceeding forecasts. Additionally, its adjusted earnings per share of $4.52 and revenue of $2.5 billion, both surpassed analysts' expectations, contributing to the stock's positive movement. However, the stock underperformed in September due to a 7.3% decline in crude oil prices, driven by concerns over rising supply and slowing global demand. Plus, stock sales from new investors following the company's $26 billion merger with Endeavor Energy Resources put further downward pressure on the share price.
Analysts' consensus rating on FANG stock is bullish, with a "Strong Buy" overall rating. Out of 26 analysts covering the stock, opinions include 19 "Strong Buys," three "Moderate Buys," and four "Holds." Currently, FANG is trading below the average analyst price target of $220.92.
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.
