It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT Quick QuoteLBRT - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Liberty Oilfield Services due for a pullback? 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 catalysts.

Liberty Energy Q4 Earnings and Revenues Miss Estimates

Liberty Energy reported fourth-quarter 2023 earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 57 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 82 cents. This was primarily due to poor equipment and services execution, and lower activity in the reported quarter.

Revenues totaled $1.07 billion, which missed the Zacks Consensus Estimate by 0.6%. The figure also underperformed the prior-year quarter’s level of $1.22 billion by 12.3%.

The Denver-CO-based oil and gas equipment company’s adjusted EBITDA was $252.5 million compared with $295.5 million in the year-ago quarter. The figure beat our projection of $250.4 million.

Ahead of the earnings release, Liberty Energy’s board of directors announced a cash dividend of 7 cents per common share, payable on Mar 20, 2024, to stockholders of record as of Mar 6, 2024.

As part of its shareholder return policy, LBRT repurchased shares worth $39 million at an average price of $19.21 per share.

Costs and Expenses

LBRT reported total costs and expenses of $951 million in the fourth quarter, down 7.4% from the year-ago quarter’s level. However, the figure is higher than our projection of $897.9 million.

Balance Sheet & Capital Expenditure

As of Dec 31, Liberty Energy had approximately $36.8 million in cash and cash equivalents. The pressure pumper’s long-term debt of $140 million represented a debt-to-capitalization of 7.1%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $314 million.

In the reported quarter, LBRT spent $133.6 million on its capital program. However, the figure is higher than our projection of $118 million. For full-year 2023, the figure came in at $576.4 million.

Guidance

LBRT expects flat sequential revenues and Adjusted EBITDA in the first quarter, driven by seasonal trends and a cautious start to E&P activity. The following quarters are expected to see a modest increase in activity. The company anticipates strong free cash flow generation in 2024, with continued investment in digiTechnologies and the LPI business.

LBRT predicts a stable outlook for the frac industry in 2024. It also anticipates continued growth in North American oil production and is confident in its competitive advantages and ability to execute long-term strategic investments.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -15.51% due to these changes.

VGM Scores

Currently, Liberty Oilfield Services 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 quintile 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, Liberty Oilfield Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.