Offshore energy producer Talos Energy (NYSE: TALO) will be reporting earnings this Tuesday after market hours. Here’s what you need to know.
Talos Energy missed analysts’ revenue expectations last quarter, reporting revenues of $418.6 million, down 17.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. It reported 64,900 oil production per day, down 5.9% year on year.
Is Talos Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Talos Energy’s revenue to decline 13.4% year on year, a reversal from the 21.5% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Talos Energy rarely misses Wall Street’s revenue estimates.
Looking at Talos Energy’s peers in the upstream & integrated segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Solaris Energy Infrastructure delivered year-on-year revenue growth of 55.3%, beating analysts’ expectations by 6.8%, and Weatherford reported a revenue decline of 3.4%, topping estimates by 0.6%. Solaris Energy Infrastructure traded up 5.4% following the results while Weatherford was also up 1.4%.
Read our full analysis of Solaris Energy Infrastructure’s results here and Weatherford’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 4.1% on average over the last month. Talos Energy is down 3.4% during the same time and is heading into earnings with an average analyst price target of $17.70 (compared to the current share price of $15.38).
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