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Why Is Patterson-UTI (PTEN) Down 20% Since Last Earnings Report?

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A month has gone by since the last earnings report for Patterson-UTI (PTEN - Free Report) . Shares have lost about 20% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Patterson-UTI due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Patterson-UTI Energy, Inc. before we dive into how investors and analysts have reacted as of late.

Patterson-UTI Q3 Loss Narrower Than Expected, Sales Beat

Patterson-UTI Energy reported a third-quarter 2025 adjusted net loss of 6 cents per share, which was narrower than the Zacks Consensus Estimate of a 10-cent loss. This was driven by a 48.7% year-over-year reduction in costs and expenses. However, the bottom line declined from the prior year’s breakeven level. This year-over-year deterioration was primarily due to the poor contributions from the Drilling Products segments.

Total revenues of $1.2 billion beat the Zacks Consensus Estimate by 1%. This was due to higher-than-expected revenues from Completion Services. Revenues of Completion Services beat the consensus mark by 2%.However, the top line decreased 14% year over year.  This underperformance can be attributed to the decrease in year-over-year revenue contribution from Drilling Services, Completion Services and Other Services segments.

The company's board of directors declared a quarterly dividend of 8 cents per share to its common shareholders of record as of Dec. 1, 2025. The payout, which is unchanged from the previous quarter, will be made on Dec. 15.

Segmental Performance                    

Drilling Services: Revenues in this segment totaled $380.2 million, down 10% from the prior-year quarter’s figure of $421.6 million. However, the top line marginally beat our estimation of $380.1 million.

Operating income amounted to $37.1 million compared with a loss of $34.4 million in the third quarter of 2024. Moreover, the figure beat our operating income estimate of $23.9 million. U.S. Contract Drilling operating days totaled 8,737 in the third quarter, with an average of 95 rigs deployed.

Completion Services: This segment’s revenues of $705.3 million dropped about 15% from the year-ago quarter’s figure of $831.6 million. However, the metric beat our estimation of $677 million.

Operating loss totaled $27.7 million against a loss of $908.7 million in the third quarter of 2024. However, the result was wider than our model’s projected loss of $18.9 million.

Drilling Products: This segment’s revenues of $85.9 million decreased about 4% from the year-ago quarter’s figure of $89.1 million. Additionally, the amount missed our estimation of $88.8 million.

Operating profit reached $5.8 million, indicating a 36% decrease compared with the third quarter of 2024. The number also missed our estimate of $13 million.

Other Services: Revenues amounted to $4.6 million, down 69% from the year-ago quarter’s figure of $15 million. Moreover, the figure missed our estimation of $10.6 million.

Operating profit amounted to $810,000 in contrast to a loss of $3.6 million in the third quarter of 2024. Additionally, the figure beat our estimation of an operating loss of $0.2 million.

Capital Expenditure & Financial Position

In the reported quarter, the company spent $144.5 million on capital programs compared with $180.6 million in the prior-year period.

As of Sept. 30, 2025, the company had cash and cash equivalents worth $186.9 million and long-term debt of $1.2 billion. The company’s debt-to-capitalization was 27.3%.

The company returned $64 million to its shareholders in the third quarter of 2025. During the same period, it repurchased $34 million worth of shares.

The company reported total operating costs and expenses of $1204 million compared with $2347.9 million in the third quarter of 2024.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 18.52% due to these changes.

VGM Scores

Currently, Patterson-UTI has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

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 upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Patterson-UTI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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