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Liberty Oilfield Services (LBRT) Up 18.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 18.9% in that time frame, outperforming 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 drivers.
Liberty Oilfield Q1 Loss Narrower Than Expected
Liberty Oilfield Services reported first-quarter 2021 net loss per share (excluding special items) of 21 cents, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The outperformance reflects strong execution and contribution from the onshore hydraulic fracturing business in the United States and Canada that the company acquired from Schlumberger (SLB Quick QuoteSLB - Research Report) in January.
However, the bottom line compared unfavorably with the year-ago quarter’s adjusted profit of 2 cents due to tepid activity levels and weather-related disruptions.
Total revenues came in at $552 million, ahead of the Zacks Consensus Estimate of $488 million. Moreover, the top line rose 16.9% from the year-ago level of $472.3 million.
The first-quarter adjusted EBITDA fell 45.1% to $31.7 million. Meanwhile, Liberty’s fleet count most likely stayed around the low 30s throughout the quarter.
Balance Sheet & Capital Expenditure
As of Mar 31, Liberty had approximately $69.5 million in cash and cash equivalents. The pressure pumper’s long-term debt of $105.3 million represented a debt-to-capitalization of 8%. Further, the company’s liquidity — cash balance, plus revolving credit facility — amounted to $258 million.
In the reported quarter, the company spent $41.9 million on its capital program.
Guidance
The firm reiterated its 2021 capital expenditure in the band of $145-$175 million (including $60 million for investment in technology) and believes that it will be cash flow positive. Liberty management sees “a pathway to normalized margins at some point in 2022,” driven by successful vaccine rollouts, accommodative policies worldwide and strong pent-up demand. Per the company, the way forward to normal margins would include improved efficiency and pricing gains. Liberty expects its second-quarter deployed fleet count to stay essentially flat sequentially.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 18.18% due to these changes.
VGM Scores
At this time, Liberty Oilfield Services has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. 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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Liberty Oilfield Services (LBRT) Up 18.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 18.9% in that time frame, outperforming 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 drivers.
Liberty Oilfield Q1 Loss Narrower Than Expected
Liberty Oilfield Services reported first-quarter 2021 net loss per share (excluding special items) of 21 cents, narrower than the Zacks Consensus Estimate of a loss of 26 cents. The outperformance reflects strong execution and contribution from the onshore hydraulic fracturing business in the United States and Canada that the company acquired from Schlumberger (SLB Quick QuoteSLB - Research Report) in January.
However, the bottom line compared unfavorably with the year-ago quarter’s adjusted profit of 2 cents due to tepid activity levels and weather-related disruptions.
Total revenues came in at $552 million, ahead of the Zacks Consensus Estimate of $488 million. Moreover, the top line rose 16.9% from the year-ago level of $472.3 million.
The first-quarter adjusted EBITDA fell 45.1% to $31.7 million. Meanwhile, Liberty’s fleet count most likely stayed around the low 30s throughout the quarter.
Balance Sheet & Capital Expenditure
As of Mar 31, Liberty had approximately $69.5 million in cash and cash equivalents. The pressure pumper’s long-term debt of $105.3 million represented a debt-to-capitalization of 8%. Further, the company’s liquidity — cash balance, plus revolving credit facility — amounted to $258 million.
In the reported quarter, the company spent $41.9 million on its capital program.
Guidance
The firm reiterated its 2021 capital expenditure in the band of $145-$175 million (including $60 million for investment in technology) and believes that it will be cash flow positive. Liberty management sees “a pathway to normalized margins at some point in 2022,” driven by successful vaccine rollouts, accommodative policies worldwide and strong pent-up demand. Per the company, the way forward to normal margins would include improved efficiency and pricing gains. Liberty expects its second-quarter deployed fleet count to stay essentially flat sequentially.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 18.18% due to these changes.
VGM Scores
At this time, Liberty Oilfield Services has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Liberty Oilfield Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.