Diamondback Energy, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +45

Q2 EPS Forecast for Diamondback Energy Lifted by Analyst

AI-generated analysis

πŸ“ˆ Zacks Research raised Q2 2026 EPS forecast for Diamondback Energy to $5.37 from $5.24.

πŸ’° Company reported Q1 earnings of $4.23 per share, beating the consensus estimate of $3.74.

πŸ“Š Revenue reached $4.24 billion, exceeding expectations of $3.83 billion and growing 4.7% year-over-year.

πŸ’΅ Quarterly dividend increased to $1.10 per share with an annualized yield of 2.3%.

🏦 Institutional ownership stands at 90.01%, led by significant position increases from Richardson Financial Services Inc.

πŸ“‰ Director Charles Alvin Meloy sold 83,334 shares under a pre-arranged Rule 10b5-1 trading plan.

🏒 Zacks Research maintains a 'Hold' rating with a full-year consensus EPS of $19.14.

πŸ“‰ Stock trades at a high price-to-earnings ratio of 227.37 with a market cap of $55.01 billion.

⛏️ Company focuses on upstream operations in the Permian Basin's Midland and Delaware sub-basins.

Bullish Signals
  • Zacks Research analysts increased their Q2 2026 earnings estimate to $5.37 per share, indicating improved profitability expectations.
  • The company beat its Q1 earnings consensus by $0.49 per share and revenue expectations by $410 million.
  • Revenue grew 4.7% year-over-year to $4.24 billion, demonstrating operational growth in the Permian Basin.
  • Diamondback Energy increased its quarterly dividend to $1.10 per share, signaling confidence in cash flow generation.
  • Richardson Financial Services Inc. significantly increased its holdings by 245.1% in the fourth quarter, reflecting institutional bullishness.
Risk Factors
  • The stock trades at a very high price-to-earnings ratio of 227.37, which may suggest elevated valuation relative to current earnings.
  • Corporate insiders sold a total of 113,691 shares valued at $21.6 million over the last 90 days, though executed under pre-arranged plans.
  • The dividend payout ratio is high at 511.63%, indicating that the current dividend exceeds trailing earnings per share.
Full Analysis
Equities researchers at Zacks Research have lifted their Q2 2026 earnings estimate for Diamondback Energy (NASDAQ: FANG) to $5.37 per share, an increase from the previous forecast of $5.24. The analyst team maintains a 'Hold' rating on the stock, with a consensus full-year earnings expectation of $19.14 per share. Additionally, Zacks has provided forward estimates for Q3 2026 at $4.32 EPS and projected earnings for fiscal years extending into 2028. Diamondback Energy recently reported its quarterly earnings on May 4th, delivering a beat with $4.23 per share against a consensus of $3.74. The company generated revenue of $4.24 billion, surpassing analyst expectations of $3.83 billion and marking a 4.7% year-over-year increase. Financial metrics included a net margin of 1.87% and a return on equity of 7.76%, while the stock traded at a price-to-earnings ratio of 227.37. The company recently paid a quarterly dividend of $1.10 per share, representing an increase from the previous quarter's payout. This move results in an annualized dividend yield of 2.3% and a payout ratio of 511.63%. Insider activity saw directors Charles Alvin Meloy and Mark Lawrence Plaumann sell shares totaling over $21 million in the last 90 days, though these transactions were executed under pre-arranged Rule 10b5-1 trading plans. Institutional ownership remains robust at 90.01%, with notable activity from hedge funds like Richardson Financial Services Inc., which lifted its holdings by 245.1% in the fourth quarter. Diamondback Energy operates as an independent oil and natural gas company focused on unconventional resources within the Permian Basin, specifically targeting contiguous acreage positions in the Midland and Delaware sub-basins to support repeatable drilling programs.