Earnings Preview: Diamondback Energy (FANG) Q4 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Diamondback Energy despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Diamondback Energy is expected to report quarterly earnings of $3.29 per share, reflecting a year-over-year decrease of 30.6$3.4 billion, which is an increase of 52.7% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 9.25% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Diamondback is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -0.03% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictor for positive readings [7][8]. - Diamondback's current Zacks Rank is 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Diamondback was expected to earn $3.80 per share but only achieved$3.38, resulting in a surprise of -11.05% [12]. - Over the past four quarters, Diamondback has beaten consensus EPS estimates three times [13]. Industry Comparison - Cheniere Energy, another player in the oil and gas exploration and production sector, is expected to report earnings of $2.69 per share, indicating a year-over-year decline of 53.3$4.41 billion, down 8.7% from the previous year [17]. - The consensus EPS estimate for Cheniere has been revised up by 0.1% in the last 30 days, but it also has a negative Earnings ESP of -0.07% [18].