Yahoo Finance Here's What Analysts Are Forecasting For Viper Energy, Inc. (NASDAQ:VNOM) After Its First-Quarter Results
Viper Energy, Inc. (NASDAQ:VNOM) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to US$37.15 in the week after its latest quarterly results. It was an okay result overall, with revenues coming in at US$205m, roughly what the analysts had been expecting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Viper Energy
Taking into account the latest results, the consensus forecast from Viper Energy's six analysts is for revenues of US$883.5m in 2024. This reflects a credible 6.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 12% to US$2.01 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$865.2m and earnings per share (EPS) of US$2.05 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$42.25, implying that the uplift in revenue is not expected to greatly contribute to Viper Energy's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Viper Energy analyst has a price target of US$53.00 per share, while the most pessimistic values it at US$35.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Viper Energy's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2024 being well below the historical 29% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.1% per year. Even after the forecast slowdown in growth, it seems obvious that Viper Energy is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Viper Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for Viper Energy going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Viper Energy that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
