Magnolia Oil & Gas Corporation (NYSE:MGY) Full-Year Results: Here's What Analysts Are Forecasting For This Year
Investors in Magnolia Oil & Gas Corporation (NYSE:MGY) had a good week, as its shares rose 3.4% to close at US$21.42 following the release of its full-year results. Magnolia Oil & Gas reported in line with analyst predictions, delivering revenues of US$1.2b and statutory earnings per share of US$2.04, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Magnolia Oil & Gas
Taking into account the latest results, the current consensus from Magnolia Oil & Gas' 13 analysts is for revenues of US$1.30b in 2024. This would reflect a credible 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decrease 3.3% to US$2.04 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.29b and earnings per share (EPS) of US$2.07 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$24.46, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Magnolia Oil & Gas, with the most bullish analyst valuing it at US$33.00 and the most bearish at US$18.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 Magnolia Oil & Gas' revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2024 being well below the historical 11% 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) 1.3% per year. Even after the forecast slowdown in growth, it seems obvious that Magnolia Oil & Gas is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$24.46, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Magnolia Oil & Gas going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Magnolia Oil & Gas that you need to take into consideration.
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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.
