West Texas landowner Texas Pacific Land (NYSE: TPL) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.
Texas Pacific Land missed analysts’ revenue expectations last quarter, reporting revenues of $236.8 million, up 20.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is Texas Pacific Land 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 Texas Pacific Land’s revenue to grow 33.1% year on year, improving from the 8.8% increase 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. Texas Pacific Land has missed Wall Street’s revenue estimates multiple times since going public.
Looking at Texas Pacific Land’s peers in the u.s. shale e&p segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cactus delivered year-on-year revenue growth of 64.3%, beating analysts’ expectations by 12.3%, and Crescent Energy reported revenues up 55.3%, topping estimates by 7.1%. Cactus traded up 18.5% following the results.
Read our full analysis of Cactus’s results here and Crescent Energy’s results here.
There has been positive sentiment among investors in the u.s. shale e&p segment, with share prices up 6% on average over the last month. Texas Pacific Land is up 1% during the same time and is heading into earnings with an average analyst price target of $443.50 (compared to the current share price of $407).
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