Offshore energy producer Talos Energy (NYSE: TALO) will be announcing earnings results this Tuesday afternoon. Here’s what investors should know.
Talos Energy met analysts’ revenue expectations last quarter, reporting revenues of $449.8 million, down 13.2% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. It reported a year-on-year oil production per day decline of 6.6%.
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 grow 28.2% year on year, a reversal from the 13.8% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. 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 Q2 results, giving us a hint as to what we can expect. Weatherford’s revenues decreased 8.2% year on year, beating analysts’ expectations by 3.4%, and Peabody Energy reported revenues up 12.7%, in line with consensus estimates. Weatherford traded up 4.5% following the results while Peabody Energy was down 7.9%.
Read our full analysis of Weatherford’s results here and Peabody Energy’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 7% on average over the last month. Talos Energy is up 14.6% during the same time and is heading into earnings with an average analyst price target of $18.89 (compared to the current share price of $15.23).
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