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Patterson-UTI's (PTEN) Q4 Earnings: Another Beat in the Cards?

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Patterson-UTI Energy (PTEN - Free Report) is set to release fourth-quarter results on Feb 8. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 43 cents per share on revenues of $759.5 million.

Let’s delve into the factors that might have influenced the onshore contract driller’s performance in the December quarter. But it’s worth taking a look at PTEN’s previous-quarter results first.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based provider of onshore oilfield services and products to energy companies beat the consensus mark due to impressive performance across its segments. Patterson-UTI had reported earnings per share of 28 cents, beating the Zacks Consensus Estimate of 19 cents. Revenues of $727.5 million also came in 6.4% above the consensus mark.

PTEN beat the Zacks Consensus Estimate for earnings thrice in the last four quarters and missed in the other, resulting in an earnings surprise of 169.2%, on average. This is depicted in the graph below:
 

Patterson-UTI Energy, Inc. Price and EPS Surprise

Patterson-UTI Energy, Inc. Price and EPS Surprise

Patterson-UTI Energy, Inc. price-eps-surprise | Patterson-UTI Energy, Inc. Quote

 

Trend in Estimate Revision

The Zacks Consensus Estimate for the fourth-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 213.2% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 62.8% increase from the year-ago period.

Factors to Consider

Last month, Patterson-UTI released an update for the October-December period, which said that its key contract drilling unit benefited from higher daily average rig revenues as contracts were renewed at prices that were more than expected. Considering the improved operating environment, the Zacks Consensus Estimate for the fourth-quarter Contract Drilling revenues is pegged at $378 million, indicating an increase of 63.6% from the year-ago quarter.

PTEN, in its release, added that the pressure pumping operations got a boost from strong pricing, higher utilization and low holiday-related downtime. As a reflection of this, the consensus mark for fourth-quarter Pressure Pumping revenues stands at $270 million, suggesting a rise of 47.5% from the fourth quarter of 2021.

Why a Likely Positive Surprise?

Our proven model predicts an earnings beat for Patterson-UTI this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

PTEN has an Earnings ESP of +5.53% and a Zacks Rank #1.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Patterson-UTI is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:

Sunoco LP (SUN - Free Report) has an Earnings ESP of +1.95% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 15.

Sunoco beat the Zacks Consensus Estimate for earnings in two of the last four quarters. It has a trailing four-quarter earnings surprise of 28.8%, on average. Valued at around $4.8 billion, SUN has gained 3.3% in a year.

Antero Midstream Corporation (AM - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 15.

For 2023, Antero Midstream has a projected earnings growth rate of 5.9%. Valued at around $5.1 billion, AM has gained 3.5% in a year.

NOV Inc. (NOV - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 6.

For 2023, NOV has a projected earnings growth rate of 165.5%. Valued at around $9.5 billion, NOV has gained 41.7% in a year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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