A Glimpse of SM Energy's Earnings Potential

SM Energy SM is gearing up to announce its quarterly earnings on Thursday, 2024-10-31. Here's a quick overview of what investors should know before the release.

Analysts are estimating that SM Energy will report an earnings per share (EPS) of $1.56.

Anticipation surrounds SM Energy's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

Last quarter the company beat EPS by $0.29, which was followed by a 10.93% increase in the share price the next day.

Here's a look at SM Energy's past performance and the resulting price change:

Analyst Views on SM Energy

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding SM Energy.

The consensus rating for SM Energy is Neutral, based on 10 analyst ratings. With an average one-year price target of $50.8, there's a potential 21.5% upside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Civitas Resources, Magnolia Oil & Gas and Murphy Oil, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Civitas Resources, with an average 1-year price target of $81.5, indicating a potential 94.93% upside.
• Magnolia Oil & Gas is maintaining an Neutral status according to analysts, with an average 1-year price target of $27.75, indicating a potential 33.63% downside.
• Murphy Oil is maintaining an Neutral status according to analysts, with an average 1-year price target of $42.18, indicating a potential 0.88% upside.

Snapshot: Peer Analysis

The peer analysis summary outlines pivotal metrics for Civitas Resources, Magnolia Oil & Gas and Murphy Oil, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

SM Energy is positioned in the middle among its peers for revenue growth, with one company showing the highest growth and another with negative growth. In terms of gross profit, SM Energy ranks at the bottom compared to its peers. For return on equity, SM Energy is in the middle range, with one company having a higher return and two others with lower returns.

Unveiling the Story Behind SM Energy

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.

SM Energy: Delving into Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, SM Energy showcased positive performance, achieving a revenue growth rate of 15.9% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: SM Energy's net margin excels beyond industry benchmarks, reaching 33.2%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): SM Energy's ROE excels beyond industry benchmarks, reaching 5.58%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.22%, the company showcases effective utilization of assets.

Debt Management: SM Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.41, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for SM Energy visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.