The U.S. earnings season, which has so far seen roughly 80% of companies reporting beat expectations, shifted into high gear this week. While most of the focus is on the big-name mega-cap stock like Apple (NASDAQ:AAPL), McDonald’s (NYSE:MCD), Caterpillar (NYSE:CAT), and Amazon (NASDAQ:AMZN), there are several other fast-growing names set to enjoy robust earnings and revenue growth thanks to surging demand for their products and services.
Here are three names well worth considering ahead of their quarterly reports in the days ahead.
1. Diamondback Energy
- Earnings Date: Monday, Nov. 1, after the close
- EPS Growth Estimate: +345.1% YoY
- Revenue Growth Estimate: +111.1% YoY
- Year-To-Date Performance: +130.7%
- Market Cap: $20.2 Billion
Diamondback Energy (NASDAQ:FANG)—which blew past estimates for earnings and revenue in the last quarter—is scheduled to report another period of explosive growth. Analysts are calling for earnings per share of $2.65, more than tripling from EPS of $0.62 in the year-ago period. Revenue is forecast to surge about 111% year-over-year to $1.52 billion, boosted by soaring crude oil and natural gas prices.
Beyond the top- and bottom-line figures, investors will keep an eye on Diamondback’s update regarding its production targets for the year ahead after increasing 36% in Q2.
Perhaps of greater importance, market players are hoping the energy firm—whose core business operations involve exploring, developing, and producing crude oil, natural gas, and natural gas liquids—will update its full-year guidance to reflect the positive impact of skyrocketing commodity prices on its business.
Additionally, investors will be eager to hear if the high-flying oil and gas producer plans to return more cash to shareholders in the form of higher dividend payouts and share buybacks. FANG's dividend provides investors an annual payout of $1.80 for a yield of 1.65%.
Diamondback shares ended Tuesday’s session at $111.69, within sight of its recent three-year peak of $114.73 reached on Oct. 18. At current levels, the Midland, Texas-based energy producer has a market cap of $20.2 billion.
One of the largest oil and natural gas producers in the Permian basin, Diamondback has thrived this year, with shares jumping nearly 131% in 2021 thanks to improving energy market fundamentals.
Honorable mentions: Exxon Mobil (NYSE:XOM), EOG Resources (NYSE:EOG), Occidental Petroleum (NYSE:OXY)
2. Digital Turbine
- Earnings Date: Tuesday, Nov. 2, after the close
- EPS Growth Estimate: +160% YoY
- Revenue Growth Estimate: +332.4% YoY
- Year-To-Date Performance: +48.7%
- Market Cap: $8.8 Billion
Digital Turbine (NASDAQ:APPS) crushed profit and sales records in the previous quarter and is forecast to report triple-digit growth for its fiscal second quarter results. The mobile ad-tech company has beaten Wall Street estimates for six consecutive quarters, thanks to mounting demand from app publishers and advertisers, which has translated into higher sales.
Wall Street's consensus estimates call for fiscal Q2 earnings per share of $0.39, improving 160% from EPS of $0.15 in the same quarter a year earlier. Revenue is forecast to soar by more than 330% year-over-year to a record $306.5 million, amid broad strength in the mobile media advertising market. In addition, growth in application media revenue—the company’s biggest segment—will be in focus. The key sales metric rose 93% year-over-year to $120.3 million in the previous quarter.
Investors will also be eyeing the mobile media advertising platform’s outlook for the current quarter amid the uncertain operating environment created by recent privacy changes in Apple’s iOS.
APPS stock—which rallied to a record high of $102.37 on Mar. 2—closed at $84.14 last night, earning the Austin, Texas-based mobile communication software provider a valuation of roughly $8.8 billion.
Widely regarded as one of the leading mobile content monetization platforms, Digital Turbine has seen its shares climb roughly 49% year-to-date, making it one of the best-performing names in the fast-growing space.
Honorable mentions: The Trade Desk (NASDAQ:TTD), HubSpot (NYSE:HUBS), Applovin (NASDAQ:APP)
3. MGM Resorts International
- Earnings Date: Wednesday, Nov. 3, after the close
- EPS Growth Estimate: +93.5% YoY
- Revenue Growth Estimate: +115.1% YoY
- Year-To-Date Performance: +49.9%
- Market Cap: $23.2 Billion
MGM Resorts International (NYSE:MGM) reported a smaller-than-expected loss and booming revenue growth when it released second quarter results in early August. For this quarter, consensus calls for a loss of $0.07 per share, improving substantially from a loss per share of $1.08 in the challenging year-ago period. Revenue is forecast to soar 115% from the same period a year earlier to $2.43 billion, driven by a recovery in its core business and strong growth in its sports-betting unit.
The biggest casino and hotel operator on the Las Vegas Strip with about a dozen properties, including the Bellagio, Mandalay Bay, and MGM Grand, MGM has been busy making moves to boost its online sports-betting offering, launching its BetMGM app in several states in the past year.
As such, Wall Street will pay close attention to growth in BetMGM’s revenue, which jumped nearly 800% to $45.9 million in the previous quarter.
Market participants will also scrutinize MGM’s update regarding its outlook for the rest of 2021 as the company looks set to continue to deliver on its key priorities.
MGM stock closed at $47.24 yesterday, not far from its recent 13-year peak of $49.11 reached on Oct. 15, earning the Paradise, Nevada-based resort company a valuation of $23.2 billion. Shares of MGM have made an impressive recovery from last year’s pandemic-driven sell-off, climbing around 50% in 2021, as people flocked back to hotels, resorts and casinos in greater numbers amid the economy reopening.
Honorable mentions: Caesars Entertainment (NASDAQ:CZR), Red Rock Resorts (NASDAQ:RRR), Hilton Grand Vacations (NYSE:HGV)