Vital Energy (NYSE:VTLE) is gearing up to announce its quarterly earnings on Wednesday, 2024-11-06. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Vital Energy will report an earnings per share (EPS) of $1.45.
The market awaits Vital Energy's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Performance in Previous Earnings
In the previous earnings release, the company missed EPS by $0.40, leading to a 3.02% increase in the share price the following trading session.
Here's a look at Vital Energy's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 1.86 | 1.97 | 2.44 | 5.24 |
| EPS Actual | 1.46 | 1.84 | 2.55 | 5.16 |
| Price Change % | 3.0% | -3.0% | 1.0% | 3.0% |
Vital Energy Share Price Analysis
Shares of Vital Energy were trading at $26.49 as of November 04. Over the last 52-week period, shares are down 40.15%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Views on Vital Energy
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Vital Energy.
A total of 9 analyst ratings have been received for Vital Energy, with the consensus rating being Neutral. The average one-year price target stands at $41.11, suggesting a potential 55.19% upside.
Comparing Ratings with Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Granite Ridge Resources, Kimbell Royalty Partners and Vitesse Energy, three key industry players, offering insights into their relative performance expectations and market positioning.
The consensus among analysts is an Neutral trajectory for Granite Ridge Resources, with an average 1-year price target of $7.0, indicating a potential 73.57% downside. As per analysts' assessments, Kimbell Royalty Partners is favoring an Buy trajectory, with an average 1-year price target of $20.5, suggesting a potential 22.61% downside. The consensus outlook from analysts is an Buy trajectory for Vitesse Energy, with an average 1-year price target of $26.0, indicating a potential 1.85% downside. Snapshot: Peer Analysis
The peer analysis summary outlines pivotal metrics for Granite Ridge Resources, Kimbell Royalty Partners and Vitesse Energy, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Vital Energy | Neutral | 42.17% | $156.16M | 1.29% |
| Granite Ridge Resources | Neutral | 3.53% | $28.51M | 0.75% |
| Kimbell Royalty Partners | Buy | 31.51% | $39.02M | 0.84% |
| Vitesse Energy | Buy | 29.10% | $23.59M | 2.10% |
Key Takeaway:
Vital Energy ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. However, its return on equity is lower than two of its peers. Overall, Vital Energy is positioned well compared to its peers in terms of financial performance.
Delving into Vital Energy's Background
Vital Energy is an independent energy company. Its business is focused on the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. The Company has identified one operating segment: exploration and production.
Breaking Down Vital Energy's Financial Performance
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Positive Revenue Trend: Examining Vital Energy's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 42.17% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.
Net Margin: Vital Energy's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 7.64%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Vital Energy's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.29%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Vital Energy's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.67%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.63.
To track all earnings releases for Vital Energy visit their earnings calendar on our site.
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