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Liberty Oilfield Services (LBRT) Up 24.6% Since Last Earnings Report: Can It Continue?
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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 24.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Liberty Oilfield Q4 Loss Wider Than Expected
Liberty Oilfield Services posted loss per share of 30 cents, wider than the Zacks Consensus Estimate of a loss of 17 cents.
The underperformance reflects the impact of the ongoing logistics challenges, rising costs and acquisition integration expenses on account of the onshore hydraulic fracturing business in the United States and Canada that the company purchased in January 2021.
However, the bottom line compared favorably with the year-ago quarter’s loss of 41 cents due to
strong execution, higher activity and increased service pricing.
Total revenues came in at $683.7 million, ahead of the Zacks Consensus Estimate of $677 million and above the year-ago level of $257.6 million.
Meanwhile, the fourth-quarter adjusted EBITDA was $20.6 million against the prior-year quarter figure of $7.1 million.
Balance Sheet & Capital Expenditure
As of Dec 31, Liberty had approximately $20 million in cash and cash equivalents. The pressure pumper’s long-term debt of $121.4 million represented a debt-to-capitalization of 9.1%. Further, the company’s liquidity — cash balance, plus revolving credit facility — amounted to $269 million.
In the reported quarter, the company spent $54.1 million on its capital program. Liberty’s full-year spending amounted to $173.4 million.
Guidance
Liberty management sees strong commodity prices driving frac service usage — especially by private upstream operators — this year. The ongoing growth momentum should benefit the company’s pricing and revenues in the first quarter. Success at lowering its operational expenses and the gradual decrease in integration costs amid increasing efficiency is likely to give a boost to margins. Liberty’s environmental-friendly and sophisticated offerings provide it with a comparative advantage. At the same time, the company is not immune to macro issues like higher transportation costs, driver scarcity and labor shortages.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -168.47% 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 a D. However, the stock was allocated a grade of B on the value side, putting it in the second 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. It's no surprise Liberty Oilfield Services has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Liberty Oilfield Services (LBRT) Up 24.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 24.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Liberty Oilfield Q4 Loss Wider Than Expected
Liberty Oilfield Services posted loss per share of 30 cents, wider than the Zacks Consensus Estimate of a loss of 17 cents.
The underperformance reflects the impact of the ongoing logistics challenges, rising costs and acquisition integration expenses on account of the onshore hydraulic fracturing business in the United States and Canada that the company purchased in January 2021.
However, the bottom line compared favorably with the year-ago quarter’s loss of 41 cents due to
strong execution, higher activity and increased service pricing.
Total revenues came in at $683.7 million, ahead of the Zacks Consensus Estimate of $677 million and above the year-ago level of $257.6 million.
Meanwhile, the fourth-quarter adjusted EBITDA was $20.6 million against the prior-year quarter figure of $7.1 million.
Balance Sheet & Capital Expenditure
As of Dec 31, Liberty had approximately $20 million in cash and cash equivalents. The pressure pumper’s long-term debt of $121.4 million represented a debt-to-capitalization of 9.1%. Further, the company’s liquidity — cash balance, plus revolving credit facility — amounted to $269 million.
In the reported quarter, the company spent $54.1 million on its capital program. Liberty’s full-year spending amounted to $173.4 million.
Guidance
Liberty management sees strong commodity prices driving frac service usage — especially by private upstream operators — this year. The ongoing growth momentum should benefit the company’s pricing and revenues in the first quarter. Success at lowering its operational expenses and the gradual decrease in integration costs amid increasing efficiency is likely to give a boost to margins. Liberty’s environmental-friendly and sophisticated offerings provide it with a comparative advantage. At the same time, the company is not immune to macro issues like higher transportation costs, driver scarcity and labor shortages.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -168.47% 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 a D. However, the stock was allocated a grade of B on the value side, putting it in the second 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. It's no surprise Liberty Oilfield Services has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.