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In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 6.5% and 8%, respectively. On a year-over-year basis, its earnings rose 120% and revenues increased by 9.5%.
This leading engineering services company’s earnings topped the consensus mark in eight of the last nine quarters.
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has dropped to 39 cents from 40 cents in the past 30 days. The estimated figure indicates a 50% increase from 26 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.01 billion, suggesting 22.2% growth from the year-ago quarter’s reported figure of $822.15 million.
ChampionX’s revenues are likely to have been aided by solid International businesses activities. The company’s three largest segments have been contributing to the top line over the past three quarters. Production Chemical Technologies might have benefited from improved global pricing, offsetting raw material inflation and high volumes. Production & Automation Technologies and Drilling Technologies segments are likely to have added to the benefits.
In the fourth quarter of 2022, CHX expects revenues to be between $985 million and $1.015 billion on a consolidated basis.
The Zacks Consensus Estimate for the Production Chemical Technologies segment’s net revenues is pegged at $650 million, indicating an increase from $495 million a year ago. The consensus estimate for the Production & Automation Technologies segment’s net revenues is pegged at $240 million, indicating a rise from the year-ago quarter’s figure of $203 million.
The Zacks Consensus Estimate for the Drilling Technologies segment’s net revenues is pegged at $60 million, indicating growth from $50 million a year ago. The consensus mark for the Reservoir Chemical Technologies segment’s net revenues is $31.9 million, versus $39.79 million reported a year ago.
Yet, restructuring charges associated with the exit of certain product lines within the Reservoir Chemical Technologies segment and raw materials and logistic inflation are likely to affect the company’s fourth-quarter results. Also, the company believes normal seasonality exists in its North American businesses due to the holidays.
The company expects continued price increase realization, driving an improvement in adjusted EBITDA margin. It expects adjusted EBITDA of $176-$184 million.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for ChampionX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of 0.00%.
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #3.
Boise Cascade’s earnings topped the consensus mark in all the last four quarters, with the average being 30.9%. Earnings for the to-be-reported quarter are expected to grow 30.3% year over year.
Otis Worldwide Corporation (OTIS - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
OTIS’ earnings topped the consensus mark in all the last four quarters, with the average being 5.3%. Earnings for the to-be-reported quarter are expected to increase 1.4% year over year.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one the last four quarters and missed the same on other three occasions, with the average being -negative 38.2%. Earnings for the to-be-reported quarter are expected to grow 74.2% year over year.
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ChampionX (CHX) Gears Up for Q4 Earnings: What's in Store?
ChampionX Corporation (CHX - Free Report) is slated to report fourth-quarter 2022 results on Feb 1, after market close.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 6.5% and 8%, respectively. On a year-over-year basis, its earnings rose 120% and revenues increased by 9.5%.
This leading engineering services company’s earnings topped the consensus mark in eight of the last nine quarters.
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has dropped to 39 cents from 40 cents in the past 30 days. The estimated figure indicates a 50% increase from 26 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.01 billion, suggesting 22.2% growth from the year-ago quarter’s reported figure of $822.15 million.
ChampionX Corporation Price and EPS Surprise
ChampionX Corporation price-eps-surprise | ChampionX Corporation Quote
Factors to Note
ChampionX’s revenues are likely to have been aided by solid International businesses activities. The company’s three largest segments have been contributing to the top line over the past three quarters. Production Chemical Technologies might have benefited from improved global pricing, offsetting raw material inflation and high volumes. Production & Automation Technologies and Drilling Technologies segments are likely to have added to the benefits.
In the fourth quarter of 2022, CHX expects revenues to be between $985 million and $1.015 billion on a consolidated basis.
The Zacks Consensus Estimate for the Production Chemical Technologies segment’s net revenues is pegged at $650 million, indicating an increase from $495 million a year ago. The consensus estimate for the Production & Automation Technologies segment’s net revenues is pegged at $240 million, indicating a rise from the year-ago quarter’s figure of $203 million.
The Zacks Consensus Estimate for the Drilling Technologies segment’s net revenues is pegged at $60 million, indicating growth from $50 million a year ago. The consensus mark for the Reservoir Chemical Technologies segment’s net revenues is $31.9 million, versus $39.79 million reported a year ago.
Yet, restructuring charges associated with the exit of certain product lines within the Reservoir Chemical Technologies segment and raw materials and logistic inflation are likely to affect the company’s fourth-quarter results. Also, the company believes normal seasonality exists in its North American businesses due to the holidays.
The company expects continued price increase realization, driving an improvement in adjusted EBITDA margin. It expects adjusted EBITDA of $176-$184 million.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for ChampionX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of 0.00%.
Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Boise Cascade Company (BCC - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #3.
Boise Cascade’s earnings topped the consensus mark in all the last four quarters, with the average being 30.9%. Earnings for the to-be-reported quarter are expected to grow 30.3% year over year.
Otis Worldwide Corporation (OTIS - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
OTIS’ earnings topped the consensus mark in all the last four quarters, with the average being 5.3%. Earnings for the to-be-reported quarter are expected to increase 1.4% year over year.
Fluor Corporation (FLR - Free Report) has an Earnings ESP of +2.48% and a Zacks Rank #2.
FLR’s earnings topped the consensus mark in one the last four quarters and missed the same on other three occasions, with the average being -negative 38.2%. Earnings for the to-be-reported quarter are expected to grow 74.2% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.