Diamondback Energy (FANG) Tops Q4 Earnings and Revenue Estimates

Core Insights - Diamondback Energy reported quarterly earnings of $3.64 per share, exceeding the Zacks Consensus Estimate of $3.26 per share, but down from $4.74 per share a year ago, indicating an earnings surprise of 11.66% [1] - The company generated revenues of $3.71 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9.18% and significantly up from $2.23 billion year-over-year [2] - Diamondback has outperformed consensus EPS estimates three times in the last four quarters and has topped consensus revenue estimates four times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.91 on revenues of $3.56 billion, while for the current fiscal year, the estimate is $15.67 on revenues of $14.99 billion [7] - The estimate revisions trend for Diamondback is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]