A month has gone by since the last earnings report for ProPetro Holding (PUMP Quick QuotePUMP - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ProPetro 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 drivers.

ProPetro Reports Wider-Than-Expected Q2 Loss

ProPetro Holding reported second-quarter 2020 adjusted net loss per share of 26 cents, wider than the Zacks Consensus Estimate of a loss of 20 cents. Moreover, the year-ago bottom-line was an earnings of 35 cents. This underperformance is due to decline in activity levels and pricing. 

However, ProPetro’srevenue of $106.11 million was in-line with the Zacks Consensus Estimate attributable tobetter-than-expected pressure pumping revenues. Precisely, this oilfield service provider’s pressure pumping revenues of $103.8 million surpassed the Zacks Consensus Estimate of $97 million. Meanwhile, the top line fell 80% year over year.

Adjusted EBITDA in the second quarter amounted to $ 25.4 million, decreasing from $126.6 million a year ago.

Pressure Pumping Division

This Midland, TX-based company through its Pressure Pumping division provides hydraulic fracturing, cementing and acidizing functions. The business accounted for 97.8% of the company's total revenues in the quarter under review. Service revenues were down more than 79.8% from the year-ago period to $103.8 million as the number of hydraulic fracturing fleets fell significantly.

Costs & Expenses

ProPetro reported cost of services of $68.2 million in the second quarter, down 82.3% from the year-ago quarter. General and administrative expenses came in at $20.3 million, down from $27.9 million in the year-ago period.

Balance Sheet & Capital Expenditure

As of Jun 30, ProPetro had cash and cash equivalents worth $37.3 million and did not incur any its long-term debt. ProPetro also has $13.1 million under its revolving credit facility. Capital expenditure for the June quarter totaled $11.9 million, down 92.6% from the level in the second-quarter 2019.

Outlook

ProPetro’s outlook for the remaining year looks uncertain as North American oilfield activity is yet to recuperate up to a level favourable enough to producing a competitive return. However, the company remains optimistic in maintaining strong customer relationships, debt-free balance sheet and deep bench of committed talent.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 6.53% due to these changes.

VGM Scores

At this time, ProPetro has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.