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Why Is Liberty Oilfield Services (LBRT) Up 4.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 4.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Liberty Oilfield Services due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Liberty Energy Q1 Earnings and Revenues Miss Estimates
Liberty Energy reported first-quarter 2024 earnings of 48 cents per share, which missed the Zacks Consensus Estimate of 54 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 90 cents. This was primarily due to poor equipment and services execution, and lower activity in the reported quarter.
Revenues totaled $1.07 billion, which missed the Zacks Consensus Estimate by 0.9%. The top line was also lower than the prior-year quarter’s level of $1.26 billion by 15.08%.
The Denver-CO-based oil and gas equipment company’s adjusted EBITDA was $244.8 million compared with $329.9 million in the year-ago quarter. However, the figure missed our projection of $249.8 million.
Ahead of the earnings release, Liberty Energy’s board of directors announced a cash dividend of 7 cents per common share, payable on Jun 20, 2024, to stockholders of record as of Jun 6, 2024.
As part of its shareholder return policy, LBRT repurchased shares worth $30 million at an average price of $20.36 per share during the reported quarter.
Costs and Expenses
LBRT reported total costs and expenses of $957.7 million in the first quarter, down 7.65% from the year-ago quarter’s level. The figure was also higher than our projection of $950.4 million.
Balance Sheet & Capital Expenditure
As of Mar 31, Liberty Energy had approximately $23.8 million in cash and cash equivalents. The pressure pumper’s long-term debt of $160 million represented a debt-to-capitalization of 8.1%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $315 million.
In the reported quarter, LBRT spent $142 million on its capital program, higher than our projection of $135.6 million.
Guidance
Liberty anticipates continued strong demand in the frac industry. LBRT expects low double-digit sequential revenue growth in the second quarter due to stable pricing and increased efficiency, as well as a corresponding improvement in profitability. Furthermore, LBRT expects robust cash flow generation throughout 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -5.64% due to these changes.
VGM Scores
Currently, Liberty Oilfield Services has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Liberty Oilfield Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Liberty Oilfield Services (LBRT) Up 4.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 4.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Liberty Oilfield Services due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Liberty Energy Q1 Earnings and Revenues Miss Estimates
Liberty Energy reported first-quarter 2024 earnings of 48 cents per share, which missed the Zacks Consensus Estimate of 54 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 90 cents. This was primarily due to poor equipment and services execution, and lower activity in the reported quarter.
Revenues totaled $1.07 billion, which missed the Zacks Consensus Estimate by 0.9%. The top line was also lower than the prior-year quarter’s level of $1.26 billion by 15.08%.
The Denver-CO-based oil and gas equipment company’s adjusted EBITDA was $244.8 million compared with $329.9 million in the year-ago quarter. However, the figure missed our projection of $249.8 million.
Ahead of the earnings release, Liberty Energy’s board of directors announced a cash dividend of 7 cents per common share, payable on Jun 20, 2024, to stockholders of record as of Jun 6, 2024.
As part of its shareholder return policy, LBRT repurchased shares worth $30 million at an average price of $20.36 per share during the reported quarter.
Costs and Expenses
LBRT reported total costs and expenses of $957.7 million in the first quarter, down 7.65% from the year-ago quarter’s level. The figure was also higher than our projection of $950.4 million.
Balance Sheet & Capital Expenditure
As of Mar 31, Liberty Energy had approximately $23.8 million in cash and cash equivalents. The pressure pumper’s long-term debt of $160 million represented a debt-to-capitalization of 8.1%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $315 million.
In the reported quarter, LBRT spent $142 million on its capital program, higher than our projection of $135.6 million.
Guidance
Liberty anticipates continued strong demand in the frac industry. LBRT expects low double-digit sequential revenue growth in the second quarter due to stable pricing and increased efficiency, as well as a corresponding improvement in profitability. Furthermore, LBRT expects robust cash flow generation throughout 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -5.64% due to these changes.
VGM Scores
Currently, Liberty Oilfield Services has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Liberty Oilfield Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.