A Peek at Talos Energy's Future Earnings

Talos Energy TALO is preparing to release its quarterly earnings on Monday, 2024-11-11. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Talos Energy to report an earnings per share (EPS) of $-0.05.

Anticipation surrounds Talos 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.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.05, leading to a 16.97% increase in the share price on the subsequent day.

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

Talos Energy Share Price Analysis

Shares of Talos Energy were trading at $11.83 as of November 07. Over the last 52-week period, shares are down 18.04%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Insights Shared by Analysts on Talos Energy

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Talos Energy.

Talos Energy has received a total of 4 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $16.25, the consensus suggests a potential 37.36% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Crescent Energy, Sitio Royalties and Sable Offshore, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Crescent Energy, with an average 1-year price target of $16.33, indicating a potential 38.04% upside.
• The consensus among analysts is an Outperform trajectory for Sitio Royalties, with an average 1-year price target of $28.8, indicating a potential 143.45% upside.
• For Sable Offshore, analysts project an Buy trajectory, with an average 1-year price target of $26.2, indicating a potential 121.47% upside.

Peers Comparative Analysis Summary

The peer analysis summary presents essential metrics for Crescent Energy, Sitio Royalties and Sable Offshore, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Talos Energy ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity.

All You Need to Know About Talos Energy

Talos Energy Inc is an independent oil and gas company predominantly involved in offshore exploration and production. The company has operations in the United States, the Gulf of Mexico, and offshore Mexico. The company's operating segments are; exploration and production of oil, natural gas and NGLs, and the CCS segment. The revenue is generated from the sale of oil, natural gas, and NGL quantities sold to purchasers.

Talos Energy's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Talos Energy's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 49.55% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Talos Energy's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 2.25%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.45%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Talos Energy's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.19%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Talos Energy's debt-to-equity ratio is below the industry average at 0.53, reflecting a lower dependency on debt financing and a more conservative financial approach.

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

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