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What's in the Offing for Liberty Energy (LBRT) in Q4 Earnings?

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Liberty Energy (LBRT - Free Report) is set to release fourth-quarter results on Jan 24. The Zacks Consensus Estimate for earnings is pegged at 57 cents per share on revenues of $1.08 billion.

Let’s delve into the factors that might have influenced LBRT’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.

Highlights of Q3 Earnings & Surprise History

In the previous reported quarter, the Denver, CO-based oilfield service company’s earnings beat the consensus mark. LBRT reported earnings per share of 85 cents, 11 cents higher than the Zacks Consensus Estimate. This was due to the higher impact of strong execution and increased service pricing. Revenues of $1.22 billion also beat the Zacks Consensus Estimate by 2.5%.

LBRT’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 9.88%. This is depicted in the graph below:

Liberty Energy Inc. Price and EPS Surprise

Liberty Energy Inc. Price and EPS Surprise

Liberty Energy Inc. price-eps-surprise | Liberty Energy Inc. Quote

 

Trend in Estimate Revision

The consensus estimate for earnings has remained unchanged in the past seven days. The estimated figure indicates a 30.49% year-over-year bottom-line decline. The Zacks Consensus Estimate for revenues indicates a deterioration of 11.62% from the year-ago period’s level.

Factors to Consider

LBRT's revenues are likely to have suffered in the quarter to be reported. Our model predicts fourth-quarter revenues to be down to $1.02 billion from the year-ago quarter’s level of $1.23 billion. This can be attributed to a weak global macroeconomic environment.

On a positive note, the reduction in LBRT's costs is likely to have boosted its bottom line. The company’s operating expenses are likely to have reached $889 million in the fourth quarter, down 13.4% from the year-ago period’s level. Its cost of services is expected to have decreased from $890.8 million to $727 million during the same time frame.  

What Does Our Model Say?

The proven Zacks model does not conclusively show an earnings beat for Liberty Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.62%.

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

Zacks Rank: LBRT currently carries a Zacks Rank #3.

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

ExxonMobil (XOM - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Feb 2.

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

ExxonMobil’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed in the other two, delivering an average surprise of 0.6%. Valued at around $384.2 billion, XOM has lost 14.1% in a year.

Range Resources Corporation (RRC - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Feb 21.

Range Resources’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 33.6%. Valued at around $7.2 billion, RRC has gained 10.5% in a year.

CNX Resources (CNX - Free Report) presently has an Earnings ESP of +3.25% and a Zacks Rank #3.

CNX Resources is scheduled to release fourth-quarter earnings on Jan 25. The Zacks Consensus Estimate for CNX’s earnings is pegged at 29 cents per share, indicating an 82.3% decline from the prior-year reported figure.

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

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