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ProPetro (PUMP) Up 1.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for ProPetro Holding (PUMP - Free Report) . Shares have added about 1.2% in that time frame, underperforming 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 drivers.
ProPetro's Q3 Earnings, Revenues Miss
ProPetro Holding Corp. reported third-quarter 2022 earnings per share of 38 cents, beating the Zacks Consensus Estimate of 36 cents and improving from the year-ago loss of 5 cents. The outperformance could primarily be attributed to improved pricing and increased activity in the reported quarter.
Meanwhile, revenues of $333 million underperformed the consensus mark of $339 million. However, revenues jumped 33.1% from the year-ago quarter’s sales of $250 million due to improved pricing and fleet repositioning, additional net pricing gains, a favorable job mix and strong cementing performance.
The improvement in revenues was supported by a sequential increase in revenues from the Pressure Pumping unit – the major contributor to PUMP’s sales. The segment reported revenues of $330.8 million, higher than the second-quarter figure of $309.4 million.
This oilfield service provider’s adjusted EBITDA in the third quarter amounted to $90 million, up sequentially 18.5% from $75.9 million in the last quarter. The sequential increase is primarily attributable to additional net pricing gains and continued fleet repositioning.
Moreover, ProPetro’s adjusted EBITDA for the Pressure Pumping unit in the June quarter came in at $102.5 million, which outperformed the Zacks Consensus Estimate of $92 million.
In a separate press release, the company announced the acquisition of wireline perforating and pumpdown service provider Silvertip Completion Services for $150 million. The buyout is expected to be accretive and brings complementary assets to ProPetro's offerings.
Pressure Pumping
ProPetro provides hydraulic fracturing, cementing and acidizing functions through the Pressure Pumping segment. The business contributed about 99.3% to PUMP's total revenues in the quarter under review.
In particular, service revenues from this unit surged about 6.9% from last quarter’s levels to $330.8 million, attributable to augmented activity and enhanced pricing.
Costs & Financial Position
ProPetro’s total third-quarter costs and expenses were $319.4 million, up 24.7% from the prior-year quarter. The service cost was $224.1 million compared with $188.7 million in the third quarter of 2021.
The company spent $80 million on capital expenditure in the reported quarter. In the third quarter, the company booked $26 million in negative free cash flows.
As of Sep 30, the Midland, TX-based operator had approximately $43.2 million in cash and cash equivalents and no debt. ProPetro had total liquidity of $155 million at the end of September 2022.
Guidance
ProPetro’s guidance for effective utilization for the second half of 2022 is maintained in the range of 14-15 fleets.
The company’s outlook for the full-year CapEx spending expenditure is expected to be approximately $325 million, representing the midpoint of the previous $300-350 million guidance range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 58.88% due to these changes.
VGM Scores
At this time, ProPetro has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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. It comes with little surprise ProPetro has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
ProPetro is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Linde (LIN - Free Report) , a stock from the same industry, has gained 14.3%. The company reported its results for the quarter ended September 2022 more than a month ago.
Linde reported revenues of $8.8 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.10 for the same period compares with $2.73 a year ago.
For the current quarter, Linde is expected to post earnings of $2.90 per share, indicating a change of +4.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Linde. Also, the stock has a VGM Score of B.
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ProPetro (PUMP) Up 1.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for ProPetro Holding (PUMP - Free Report) . Shares have added about 1.2% in that time frame, underperforming 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 drivers.
ProPetro's Q3 Earnings, Revenues Miss
ProPetro Holding Corp. reported third-quarter 2022 earnings per share of 38 cents, beating the Zacks Consensus Estimate of 36 cents and improving from the year-ago loss of 5 cents. The outperformance could primarily be attributed to improved pricing and increased activity in the reported quarter.
Meanwhile, revenues of $333 million underperformed the consensus mark of $339 million. However, revenues jumped 33.1% from the year-ago quarter’s sales of $250 million due to improved pricing and fleet repositioning, additional net pricing gains, a favorable job mix and strong cementing performance.
The improvement in revenues was supported by a sequential increase in revenues from the Pressure Pumping unit – the major contributor to PUMP’s sales. The segment reported revenues of $330.8 million, higher than the second-quarter figure of $309.4 million.
This oilfield service provider’s adjusted EBITDA in the third quarter amounted to $90 million, up sequentially 18.5% from $75.9 million in the last quarter. The sequential increase is primarily attributable to additional net pricing gains and continued fleet repositioning.
Moreover, ProPetro’s adjusted EBITDA for the Pressure Pumping unit in the June quarter came in at $102.5 million, which outperformed the Zacks Consensus Estimate of $92 million.
In a separate press release, the company announced the acquisition of wireline perforating and pumpdown service provider Silvertip Completion Services for $150 million. The buyout is expected to be accretive and brings complementary assets to ProPetro's offerings.
Pressure Pumping
ProPetro provides hydraulic fracturing, cementing and acidizing functions through the Pressure Pumping segment. The business contributed about 99.3% to PUMP's total revenues in the quarter under review.
In particular, service revenues from this unit surged about 6.9% from last quarter’s levels to $330.8 million, attributable to augmented activity and enhanced pricing.
Costs & Financial Position
ProPetro’s total third-quarter costs and expenses were $319.4 million, up 24.7% from the prior-year quarter. The service cost was $224.1 million compared with $188.7 million in the third quarter of 2021.
The company spent $80 million on capital expenditure in the reported quarter. In the third quarter, the company booked $26 million in negative free cash flows.
As of Sep 30, the Midland, TX-based operator had approximately $43.2 million in cash and cash equivalents and no debt. ProPetro had total liquidity of $155 million at the end of September 2022.
Guidance
ProPetro’s guidance for effective utilization for the second half of 2022 is maintained in the range of 14-15 fleets.
The company’s outlook for the full-year CapEx spending expenditure is expected to be approximately $325 million, representing the midpoint of the previous $300-350 million guidance range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 58.88% due to these changes.
VGM Scores
At this time, ProPetro has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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. It comes with little surprise ProPetro has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
ProPetro is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Linde (LIN - Free Report) , a stock from the same industry, has gained 14.3%. The company reported its results for the quarter ended September 2022 more than a month ago.
Linde reported revenues of $8.8 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.10 for the same period compares with $2.73 a year ago.
For the current quarter, Linde is expected to post earnings of $2.90 per share, indicating a change of +4.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Linde. Also, the stock has a VGM Score of B.