Matador Resources earnings: what to look for from MTDR

Oil and gas producer Matador Resources (NYSE:MTDR) will be announcing earnings results this Tuesday after market hours. Here’s what investors should know.

Matador Resources beat analysts’ revenue expectations last quarter, reporting revenues of $1.19 billion, up 32.5% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. It reported year-on-year oil production per day growth of 2.6%.

Is Matador Resources a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Matador Resources’s revenue to grow 17.4% year on year, improving from the 4.4% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Matador Resources has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Matador Resources’s peers in the upstream & integrated segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cactus delivered year-on-year revenue growth of 63.2%, meeting analysts’ expectations, and Expand Energy reported revenues up 11.6%, topping estimates by 54.4%. Cactus traded up 1.8% following the results while Expand Energy was down 3.2%.

Read our full analysis of Cactus’s results here and Expand Energy’s results here.

There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 4.4% on average over the last month. Matador Resources is up 14.3% during the same time and is heading into earnings with an average analyst price target of $71.10 (compared to the current share price of $60.58).

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