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In the last reported quarter, earnings met the Zacks Consensus Estimate and revenues missed the same by 2.4%. Earnings and net sales increased 63.6% and 9.5% from the year-ago quarter’s figures, respectively.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) remained unchanged at 45 cents in the past 30 days. The estimated figure indicates a 60.7% increase from the year-ago quarter’s earnings of 28 cents per share. The consensus mark for revenues is pegged at $978.4 million, suggesting a 4.9% year-over-year increase.
Despite challenging macro conditions, CHX is likely to benefit from its production-oriented business portfolio, cost-saving strategies and digital innovations. The company witnessed robust demand in the international markets in April. The company anticipates the seasonal rebound in its international businesses and continued positive momentum in its shorter-cycle North American businesses will help the company to drive solid revenue and bottom-line growth. Continued adoption of its fit-for-purpose digital solutions, including emissions management technologies that drive tangible productivity for its customers will contribute to revenues.
ChampionX is expected to witness revenue growth in its major segments. The Zacks Consensus Estimate for Production Chemical Technologies (accounted for 62.4% of total revenues in the first-quarter 2023) and Production Automation Technologies (26.5%) segment revenues are currently pegged at $624 million and $264 million, respectively. The estimates suggest a 13% and 9.1% year-over-year growth.
CHX anticipates consolidated revenues of $970 million to $1 billion for the quarter. Adjusted EBITDA is expected in the range of $182-$190 million, indicating a 35% increase from second-quarter 2022 levels at the midpoint. The company is focused on driving margin expansion and expects the adjusted EBIDTA to grow throughout the year.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for ChampionX for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: CHX has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ChampionX currently carries a Zacks Rank #3.
Stocks With Favorable Combinations
Here are some companies in the Zacks Construction sector which, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
PulteGroup, Inc. (PHM - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank #1.
PHM’s earnings missed the consensus mark once but beat the same on three other occasions, the average surprise being 15.6%. Earnings for the to-be-reported quarter are expected to decrease 10.3% year over year.
OC’s earnings topped the consensus mark in all the last four quarters, the average being 15.1%. Earnings for the to-be-reported quarter are expected to decrease 17.8% year over year.
Taylor Morrison Home Corporation (TMHC - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank #2.
TMHC’s earnings topped the consensus mark in all the last four quarters, the average being 17.3%. Earnings for the to-be-reported quarter are expected to decrease 26.9% year over year.
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ChampionX (CHX) to Report Q2 Earnings: What to Expect?
ChampionX Corporation (CHX - Free Report) is scheduled to report second-quarter 2023 results on Jul 24, 2023, after market close.
In the last reported quarter, earnings met the Zacks Consensus Estimate and revenues missed the same by 2.4%. Earnings and net sales increased 63.6% and 9.5% from the year-ago quarter’s figures, respectively.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) remained unchanged at 45 cents in the past 30 days. The estimated figure indicates a 60.7% increase from the year-ago quarter’s earnings of 28 cents per share. The consensus mark for revenues is pegged at $978.4 million, suggesting a 4.9% year-over-year increase.
ChampionX Corporation Price and EPS Surprise
ChampionX Corporation price-eps-surprise | ChampionX Corporation Quote
Factors to Note
Despite challenging macro conditions, CHX is likely to benefit from its production-oriented business portfolio, cost-saving strategies and digital innovations. The company witnessed robust demand in the international markets in April. The company anticipates the seasonal rebound in its international businesses and continued positive momentum in its shorter-cycle North American businesses will help the company to drive solid revenue and bottom-line growth. Continued adoption of its fit-for-purpose digital solutions, including emissions management technologies that drive tangible productivity for its customers will contribute to revenues.
ChampionX is expected to witness revenue growth in its major segments. The Zacks Consensus Estimate for Production Chemical Technologies (accounted for 62.4% of total revenues in the first-quarter 2023) and Production Automation Technologies (26.5%) segment revenues are currently pegged at $624 million and $264 million, respectively. The estimates suggest a 13% and 9.1% year-over-year growth.
CHX anticipates consolidated revenues of $970 million to $1 billion for the quarter. Adjusted EBITDA is expected in the range of $182-$190 million, indicating a 35% increase from second-quarter 2022 levels at the midpoint. The company is focused on driving margin expansion and expects the adjusted EBIDTA to grow throughout the year.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for ChampionX for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: CHX has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ChampionX currently carries a Zacks Rank #3.
Stocks With Favorable Combinations
Here are some companies in the Zacks Construction sector which, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
PulteGroup, Inc. (PHM - Free Report) has an Earnings ESP of +1.17% and a Zacks Rank #1.
PHM’s earnings missed the consensus mark once but beat the same on three other occasions, the average surprise being 15.6%. Earnings for the to-be-reported quarter are expected to decrease 10.3% year over year.
Owens Corning (OC - Free Report) has an Earnings ESP of +0.19% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
OC’s earnings topped the consensus mark in all the last four quarters, the average being 15.1%. Earnings for the to-be-reported quarter are expected to decrease 17.8% year over year.
Taylor Morrison Home Corporation (TMHC - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank #2.
TMHC’s earnings topped the consensus mark in all the last four quarters, the average being 17.3%. Earnings for the to-be-reported quarter are expected to decrease 26.9% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.