Diamondback Energy, Inc. (NASDAQ:FANG) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Diamondback Energy, Inc. (NASDAQ:FANG) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to US$152 in the week after its latest yearly results. It was a workmanlike result, with revenues of US$11b coming in 3.6% ahead of expectations, and statutory earnings per share of US$15.53, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Diamondback Energy

Following the latest results, Diamondback Energy's 17 analysts are now forecasting revenues of US$14.8b in 2025. This would be a substantial 35% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 42% to US$16.17. Before this earnings report, the analysts had been forecasting revenues of US$14.6b and earnings per share (EPS) of US$15.91 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$212, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Diamondback Energy, with the most bullish analyst valuing it at US$245 and the most bearish at US$168 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Diamondback Energy's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 23% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Diamondback Energy is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$212, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Diamondback Energy going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 4 warning signs for Diamondback Energy (2 make us uncomfortable!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.