As you might know, Diamondback Energy, Inc. (NASDAQ:FANG) just kicked off its latest second-quarter results with some very strong numbers. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 12% higher than the analysts had forecast, at US$5.6b, while EPS of US$6.65 beat analyst models by 13%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Diamondback Energy after the latest results.

Following the latest results, Diamondback Energy's 17 analysts are now forecasting revenues of US$18.3b in 2026. This would be a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 220% to US$16.62. Before this earnings report, the analysts had been forecasting revenues of US$18.1b and earnings per share (EPS) of US$15.41 in 2026. So the consensus seems to have become somewhat more optimistic on Diamondback Energy's earnings potential following these results.

The consensus price target was unchanged at US$233, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Diamondback Energy at US$272 per share, while the most bearish prices it at US$200. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Diamondback Energy's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 20% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Diamondback Energy is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Diamondback Energy's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Diamondback Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Diamondback Energy analysts - going out to 2028, and you can see them free on our platform here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.