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ProPetro (PUMP) Down 20.6% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for ProPetro Holding (PUMP - Free Report) . Shares have lost about 20.6% in that time frame, underperforming 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 Q4 Earnings Miss, Revenues Beat
ProPetro Holding Corp. reported fourth-quarter 2022 earnings per share (EPS) of 31 cents, missing the Zacks Consensus Estimate of 34 cents. The underperformance could primarily be attributed to increased costs and expenses in the reported quarter.
However, the company’s bottom line turned around from the year-ago quarter’s loss of 20 cents per share due to implementation of price hikes and additional revenues earned from the newly acquired segment — Silvertip Completion Services Operating.
Meanwhile, revenues of $348.9 million beat the consensus mark of $338 million and jumped 41.9% from the year-ago quarter’s $246.1 million.
The oilfield service provider’s adjusted EBITDA for the fourth quarter was $84.1 million, down 7% from the third quarter. This was mainly due to reduced usage from fleet repositioning, weather impact and expenses for activating the 15th fleet.
Silvertip Completion Services
Service revenues from this unit surged about 5.5% from the previous quarter’s level to $349 million. This hike was due to high demand for hydraulic fracturing in the Permian Basin, aided by investments in technology, infrastructure, expansion of the sand facility and fleets, and pricing.
Costs & Financial Position
As of Dec 31, 2022, the Midland, TX-based oilfield services company had approximately $88.9 million in cash and cash equivalents, and $30 million in long-term debt. It had a debt-to-capitalization of almost 3%.
ProPetro had total liquidity of $155 million as of Dec 31, 2022.
The company announced that its capex spending was $89.4 million in the fourth quarter and $365.3 million in 2022.
Key Points
ProPetro ordered two more electric fleets, taking the 2023 delivery total to four. The objective was to meet the rising demand for cleaner, quieter hydraulic fracturing.
ProPetro also announced the completion of its first long-term contract for the new electric fleet, which is likely to increase the demand for its electric fleet offerings going forward.
Guidance
ProPetro expects an effective utilization rate of 14.5-15.5 fleet for the first quarter of 2023. It is confident that continued fleet revitalization and strategic investments will benefit its shareholders.
The company plans its capex spending in the range of $250-$300 million for full-year 2023.
ProPetro is highly optimistic about Silvertip Completion Services, anticipating robust demand for these services in the upcoming quarters.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, ProPetro 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 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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ProPetro (PUMP) Down 20.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for ProPetro Holding (PUMP - Free Report) . Shares have lost about 20.6% in that time frame, underperforming 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 Q4 Earnings Miss, Revenues Beat
ProPetro Holding Corp. reported fourth-quarter 2022 earnings per share (EPS) of 31 cents, missing the Zacks Consensus Estimate of 34 cents. The underperformance could primarily be attributed to increased costs and expenses in the reported quarter.
However, the company’s bottom line turned around from the year-ago quarter’s loss of 20 cents per share due to implementation of price hikes and additional revenues earned from the newly acquired segment — Silvertip Completion Services Operating.
Meanwhile, revenues of $348.9 million beat the consensus mark of $338 million and jumped 41.9% from the year-ago quarter’s $246.1 million.
The oilfield service provider’s adjusted EBITDA for the fourth quarter was $84.1 million, down 7% from the third quarter. This was mainly due to reduced usage from fleet repositioning, weather impact and expenses for activating the 15th fleet.
Silvertip Completion Services
Service revenues from this unit surged about 5.5% from the previous quarter’s level to $349 million. This hike was due to high demand for hydraulic fracturing in the Permian Basin, aided by investments in technology, infrastructure, expansion of the sand facility and fleets, and pricing.
Costs & Financial Position
As of Dec 31, 2022, the Midland, TX-based oilfield services company had approximately $88.9 million in cash and cash equivalents, and $30 million in long-term debt. It had a debt-to-capitalization of almost 3%.
ProPetro had total liquidity of $155 million as of Dec 31, 2022.
The company announced that its capex spending was $89.4 million in the fourth quarter and $365.3 million in 2022.
Key Points
ProPetro ordered two more electric fleets, taking the 2023 delivery total to four. The objective was to meet the rising demand for cleaner, quieter hydraulic fracturing.
ProPetro also announced the completion of its first long-term contract for the new electric fleet, which is likely to increase the demand for its electric fleet offerings going forward.
Guidance
ProPetro expects an effective utilization rate of 14.5-15.5 fleet for the first quarter of 2023. It is confident that continued fleet revitalization and strategic investments will benefit its shareholders.
The company plans its capex spending in the range of $250-$300 million for full-year 2023.
ProPetro is highly optimistic about Silvertip Completion Services, anticipating robust demand for these services in the upcoming quarters.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, ProPetro 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 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.