A month has gone by since the last earnings report for ProPetro Holding (PUMP Quick QuotePUMP - Free Report) . Shares have added about 27.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ProPetro 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.

ProPetro Incurs Wider-Than-Expected Q4 Loss, Revenues Beat

ProPetro Holding reported fourth-quarter 2021 loss per share of 20 cents. It was 19 cents wider than the Zacks Consensus Estimate and deteriorated from the year-ago loss of 13 cents. The underperformance reflects lower activity levels due to asset rejig, seasonality and escalating costs.

However, revenues of $246.1 million outpaced the consensus mark of $243 million and jumped 59.4% from the year-ago quarter’s sales of $154.3 million on pricing gains. This was partly offset by lower-than-expected revenues from the Pressure Pumping unit — the major contributor to PUMP’s sales. The segment reported revenues of $240.3 million, below the consensus mark of $243 million.
 
This oilfield service provider’s adjusted EBITDA in the fourth quarter amounted to $37.2 million, up from $23.8 million in the year-ago quarter. Better pricing and increased profitability drove the adjusted EBITDA.

But ProPetro’s adjusted EBITDA for the Pressure Pumping unit during the December quarter came in at $49 million, which undershot the Zacks Consensus Estimate of $52 million as lower fleet activity took its toll.

Pressure Pumping

PUMP provides hydraulic fracturing, cementing and acidizing functions through the Pressure Pumping segment. The business contributed around 98% to ProPetro's total revenues in the quarter under review. In particular, service revenues from this unit surged 58.7% from the prior-year quarter’s levels to $240.3 million, attributable to higher fleet strength and enhanced pricing.

Costs & Financial Position

ProPetro’s fourth-quarter total costs and expenses were $268.5 million, up 27.6% from the prior-year quarter. Service cost was $187.4 million compared with $115.6 in the fourth quarter of 2020.

PUMP spent $48.4 million in capital expenditure. The company booked $26.7 million of free cash flows in the fourth quarter.

As of Dec 31, the Midland, TX-based operator had approximately $111.9 million in cash and cash equivalents, and no debt. Including cash and $57 million under its revolving credit facility, ProPetro had total liquidity of $169 million at the end of 2021.

Guidance

Management remains optimistic about the U.S. frac market in 2022, with a favorable supply-demand backdrop. The company forecast a capital spending budget between $250 million and $300 million, which includes $9 million of maintenance expense per fleet. Of the total, $100 million will be earmarked for fleet refurbishments and upgrades.




 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

The consensus estimate has shifted 5.88% due to these changes.

VGM Scores

At this time, ProPetro has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, 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 trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.