## Talos Energy (TALO) Earnings Preview: What to Watch for on November 11th
Get ready for Talos Energy’s (TALO) quarterly earnings release on Monday, November 11th, 2024. This is a key moment for investors, as they anticipate insights into the company’s performance and future outlook.
What to Expect
Analysts are predicting an earnings per share (EPS) of -$0.05 for the quarter. While this might sound concerning, investors will be closely watching for signs of exceeding expectations and positive guidance for the upcoming quarter. Remember, market reactions often go beyond just the earnings report; investors are keen on hearing about the company’s future trajectory.
Past Performance: A Mixed Bag
Looking back, Talos Energy has delivered a mixed bag of results in recent quarters. In the last quarter, the company beat EPS estimates by $0.05, leading to a significant 16.97% jump in share price the following day. However, this positive performance follows a pattern of fluctuating earnings and share price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | -0.02 | 0.03 | 17.0% |
| Q1 2024 | -0.10 | -0.13 | -4.0% |
| Q4 2023 | 0.17 | -0.01 | 1.0% |
| Q3 2023 | 0.12 | 0.15 | -4.0% |
Share Price Analysis: Long-Term Concerns
As of November 7th, Talos Energy shares were trading at $11.83. Over the past 52 weeks, the stock has dipped by 18.04%. This downward trend suggests a bearish sentiment among long-term shareholders heading into the earnings release.
Analyst Insights: A Glimpse into Market Sentiments
To understand the broader market expectations, it’s crucial to consider analyst perspectives. Talos Energy has garnered 4 ratings from analysts, with the consensus rating pointing to an ‘Outperform’ trajectory. The average one-year price target is $16.25, indicating a potential 37.36% upside.
Comparing Talos Energy to its Peers
How does Talos Energy stack up against its peers in the oil and gas industry? Let’s take a look at Crescent Energy, Sitio Royalties, and Sable Offshore, three prominent players, to understand their relative performance expectations:
*
Crescent Energy:
‘Outperform’ consensus with an average one-year price target of $16.33 (potential 38.04% upside).*
Sitio Royalties:
‘Outperform’ consensus with an average one-year price target of $28.8 (potential 143.45% upside).*
Sable Offshore:
‘Buy’ consensus with an average one-year price target of $26.2 (potential 121.47% upside).Peer Analysis Summary
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Talos Energy | Outperform | 49.55% | $132.29M | 0.45% |
| Crescent Energy | Outperform | 15.95% | $615.33M | -0.40% |
| Sitio Royalties | Outperform | -4.68% | $71.28M | 0.84% |
| Sable Offshore | Buy | 0.00% | $-2.72M | -85.58% |
Key Takeaways
* Talos Energy outperforms its peers in revenue growth and gross profit margin. However, it trails in return on equity.
About Talos Energy
Talos Energy Inc. is an independent oil and gas company specializing in offshore exploration and production. The company operates in the United States, the Gulf of Mexico, and offshore Mexico. Its key segments include exploration and production of oil, natural gas, and NGLs, and the CCS (Carbon Capture and Storage) segment.
Financial Performance: Key Metrics to Watch
*
Market Capitalization:
Below industry benchmarks, suggesting a smaller scale compared to peers.*
Revenue:
Talos Energy demonstrates positive revenue growth, achieving a 49.55% increase as of June 30, 2024.*
Net Margin:
Below industry standards, indicating challenges in achieving strong profitability.*
Return on Equity (ROE):
Below industry benchmarks, suggesting potential difficulties in efficiently using equity capital.*
Return on Assets (ROA):
Lags behind industry averages, indicating challenges in maximizing returns from its assets.*
Debt Management:
A conservative financial approach with a debt-to-equity ratio below the industry average.Stay Informed
To stay up-to-date on all earnings releases for Talos Energy, visit the earnings calendar on our website.
