In a recent research note, Zacks Research has revised its earnings per share (EPS) estimate for Diamondback Energy, Inc. (NASDAQ: FANG) for Q3 2024, raising it from $4.10 to $4.14. This adjustment comes as the company continues to demonstrate strong financial performance, with solid returns and increased revenue growth, reinforcing investor confidence in its future prospects.
The recent Zacks Research update on Diamondback Energy, Inc. (NASDAQ: FANG) has provided several noteworthy insights into the company’s projected earnings and financial performance. Analyst N. Choudhury has adjusted the Q3 2024 earnings per share (EPS) estimate for Diamondback Energy, raising it from $4.10 to $4.14. This adjustment reflects a positive outlook on the company’s near-term financial performance. Additionally, the consensus estimate for Diamondback Energy’s full-year 2024 earnings stands at $18.63 per share, while Zacks Research has issued estimates for subsequent quarters and years, indicating steady growth through 2026.
In their most recent earnings report, Diamondback Energy posted $4.52 EPS for Q2 2024, slightly beating the consensus estimate by $0.01. This performance is supported by a robust return on equity of 19.36% and a net margin of 36.71%. Revenue for the quarter was $2.48 billion, up 29.4% year-over-year, exceeding analysts’ expectations.
Despite the positive earnings and revenue growth, Diamondback Energy’s stock saw a decline of 3.1%, with shares trading at $189.75 on the day mentioned. The stock has been subject to mixed analyst ratings, with price targets ranging from $220.00 to $245.00. However, it remains well-regarded, with a consensus rating of “Moderate Buy” and a target price around $211.85.
On the financial front, Diamondback Energy continues to reward shareholders through dividends, with a recently declared None dividend of $2.34 per share. Institutional investors have also shown strong confidence in the company, with significant investments and position adjustments from entities like Price T Rowe Associates, Boston Partners, and the Canada Pension Plan Investment Board.
Overall, Diamondback Energy’s focus on its core assets in the Permian Basin and its strategic financial management have positioned it well for continued growth, despite the recent stock price fluctuations.
