Liberty Energy Inc. (LBRT - Free Report) 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.
Zacks Rank and Key Picks
Currently, LBRT carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Murphy USA Inc. (MUSA - Free Report) and Archrock, Inc. (AROC - Free Report) , each sporting a Zacks #1 Rank (Strong Buy), and Sunoco LP (SUN - Free Report) , carrying a Zacks #2 Rank (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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MUSA markets retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.
Archrock is valued at $3.03 billion. The company currently pays a dividend of 66 cents per share, or 3.40%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Sunoco is valued at $5.16 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, thereby ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income, and the Brownsville terminal expansion should add to its revenue diversification.
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Liberty Energy Inc. (LBRT - Free Report) 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.
Zacks Rank and Key Picks
Currently, LBRT carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Murphy USA Inc. (MUSA - Free Report) and Archrock, Inc. (AROC - Free Report) , each sporting a Zacks #1 Rank (Strong Buy), and Sunoco LP (SUN - Free Report) , carrying a Zacks #2 Rank (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is valued at approximately $8.69 billion. In the past year, the company’s shares have surged 56.5%.
MUSA markets retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.
Archrock is valued at $3.03 billion. The company currently pays a dividend of 66 cents per share, or 3.40%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Sunoco is valued at $5.16 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, thereby ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income, and the Brownsville terminal expansion should add to its revenue diversification.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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