Matador Resources Company (NYSE:MTDR): What Does The Future Look Like?
In September 2018, Matador Resources Company (NYSE:MTDR) released its earnings update. Generally, analysts seem fairly confident, with earnings expected to grow by 31% in the upcoming year relative to the past 5-year average growth rate of 11%. Presently, with latest-twelve-month earnings at US$126m, we should see this growing to US$164m by 2019. Below is a brief commentary on the longer term outlook the market has for Matador Resources. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Matador Resources
Exciting times ahead?
Over the next three years, it seems the consensus view of the 12 analysts covering MTDR is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of MTDR’s earnings growth over these next few years.
By 2021, MTDR’s earnings should reach US$227m, from current levels of US$126m, resulting in an annual growth rate of 17%. This leads to an EPS of $2.66 in the final year of projections relative to the current EPS of $1.23. Margins are currently sitting at 25%, which is expected to expand to 26% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Matador Resources, there are three pertinent factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for Matador Resources’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Matador Resources? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
