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Why Is ProPetro (PUMP) Down 2.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for ProPetro Holding (PUMP - Free Report) . Shares have lost about 2.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ProPetro due for a breakout? 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.
ProPetro's Q1 Earnings, Revenues Beat
ProPetro Holding reported a first-quarter 2022 earnings per share of 11 cents, beating the Zacks Consensus Estimate of 4 cents and improving from the year-ago loss of 20 cents. The outperformance could primarily be attributed to improved pricing and increased activity in the reported quarter.
Revenues of $282.7 million outpaced the consensus mark of $273 million and jumped 75% from the year-ago quarter’s sales of $161.5 million on pricing gains. This was augmented by greater-than-expected revenues from the Pressure Pumping unit – the major contributor to PUMP’s sales. The segment reported revenues of $277.1 million, higher than the consensus mark of $268 million.
This oilfield service provider’s adjusted EBITDA in the first quarter amounted to $67 million, 81% up sequentially from $37 million in the last quarter. Better pricing and increased profitability drove the adjusted EBITDA.
Moreover, ProPetro’s adjusted EBITDA for the Pressure Pumping unit in the December quarter came in at $77 million, which outperformed the Zacks Consensus Estimate of $63 million.
Pressure Pumping
ProPetro provides hydraulic fracturing, cementing and acidizing functions through the Pressure Pumping segment. The business contributed a little more than 98% to PUMP's total revenues in the quarter under review. In particular, service revenues from this unit surged about 75% from the prior-year quarter’s levels to $277.1 million, attributable to higher fleet strength and enhanced pricing.
Costs & Financial Position
ProPetro’s first-quarter total costs and expenses were $276.9 million, up 45.7% from the prior-year quarter. The service cost was $197.3 million compared with $123.4 million in the first quarter of 2021.
The company spent $71.7 million on capital expenditure. In the first quarter, the company booked $38.9 million of negative free cash flows.
As of Mar 31, the Midland, TX-based operator had approximately $70.8 million in cash and cash equivalents and no debt. Including cash and $56 million under its revolving credit facility, ProPetro had total liquidity of $127 million at the end of March 2022.
Guidance
ProPetro’s guidance for the second-quarter average effective fleet utilization is between 13.5 and 14.5 fleets.
The company mentioned that its outlook for the full-year CapEx spending remains unchanged at the $250 million-$300 million range, which includes $9 million in maintenance expenses per fleet.
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 27.61% due to these changes.
VGM Scores
Currently, ProPetro has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ProPetro belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Oceaneering International (OII - Free Report) , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Oceaneering International reported revenues of $446.16 million in the last reported quarter, representing a year-over-year change of +2%. EPS of -$0.06 for the same period compares with $0.03 a year ago.
Oceaneering International is expected to post earnings of $0.08 per share for the current quarter, representing a year-over-year change of -20%. Over the last 30 days, the Zacks Consensus Estimate has changed -40%.
Oceaneering International has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is ProPetro (PUMP) Down 2.2% Since Last Earnings Report?
A month has gone by since the last earnings report for ProPetro Holding (PUMP - Free Report) . Shares have lost about 2.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ProPetro due for a breakout? 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.
ProPetro's Q1 Earnings, Revenues Beat
ProPetro Holding reported a first-quarter 2022 earnings per share of 11 cents, beating the Zacks Consensus Estimate of 4 cents and improving from the year-ago loss of 20 cents. The outperformance could primarily be attributed to improved pricing and increased activity in the reported quarter.
Revenues of $282.7 million outpaced the consensus mark of $273 million and jumped 75% from the year-ago quarter’s sales of $161.5 million on pricing gains. This was augmented by greater-than-expected revenues from the Pressure Pumping unit – the major contributor to PUMP’s sales. The segment reported revenues of $277.1 million, higher than the consensus mark of $268 million.
This oilfield service provider’s adjusted EBITDA in the first quarter amounted to $67 million, 81% up sequentially from $37 million in the last quarter. Better pricing and increased profitability drove the adjusted EBITDA.
Moreover, ProPetro’s adjusted EBITDA for the Pressure Pumping unit in the December quarter came in at $77 million, which outperformed the Zacks Consensus Estimate of $63 million.
Pressure Pumping
ProPetro provides hydraulic fracturing, cementing and acidizing functions through the Pressure Pumping segment. The business contributed a little more than 98% to PUMP's total revenues in the quarter under review. In particular, service revenues from this unit surged about 75% from the prior-year quarter’s levels to $277.1 million, attributable to higher fleet strength and enhanced pricing.
Costs & Financial Position
ProPetro’s first-quarter total costs and expenses were $276.9 million, up 45.7% from the prior-year quarter. The service cost was $197.3 million compared with $123.4 million in the first quarter of 2021.
The company spent $71.7 million on capital expenditure. In the first quarter, the company booked $38.9 million of negative free cash flows.
As of Mar 31, the Midland, TX-based operator had approximately $70.8 million in cash and cash equivalents and no debt. Including cash and $56 million under its revolving credit facility, ProPetro had total liquidity of $127 million at the end of March 2022.
Guidance
ProPetro’s guidance for the second-quarter average effective fleet utilization is between 13.5 and 14.5 fleets.
The company mentioned that its outlook for the full-year CapEx spending remains unchanged at the $250 million-$300 million range, which includes $9 million in maintenance expenses per fleet.
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 27.61% due to these changes.
VGM Scores
Currently, ProPetro has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ProPetro belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Oceaneering International (OII - Free Report) , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Oceaneering International reported revenues of $446.16 million in the last reported quarter, representing a year-over-year change of +2%. EPS of -$0.06 for the same period compares with $0.03 a year ago.
Oceaneering International is expected to post earnings of $0.08 per share for the current quarter, representing a year-over-year change of -20%. Over the last 30 days, the Zacks Consensus Estimate has changed -40%.
Oceaneering International has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.