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Liberty Oilfield Services (LBRT) Up 10% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 10% 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 Q2 Earnings Beat
Liberty Energy announced second-quarter 2022 earnings per share of 55 cents, which handily beat the Zacks Consensus Estimate of 18 cents and almost doubled from the year-earlier bottom line of 29 cents.
The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution, higher activity and increased service pricing, which more than offset rising costs.
Total revenues came in at $942.6 million, ahead of the Zacks Consensus Estimate of $875 million and 62.2% above the year-ago level of $581.3 million.
Meanwhile, second-quarter adjusted EBITDA was $196.1 million against the prior-year quarter figure of $36.6 million.
Balance Sheet & Capital Expenditure
As of Jun 30, Liberty had approximately $41.5 million in cash and cash equivalents. The pressure pumper’s long-term debt of $252.9 million represented a debt-to-capitalization of 16%. Further, the company’s liquidity — cash balance, plus revolving credit facility — amounted to $240 million.
In the reported quarter, the company spent $127 million on its capital program.
Guidance
The Ukraine conflict and sweeping international curbs on Moscow have aggravated the oil supply shortage. This means upstream operators are drilling more wells to increase output that has remained depressed over the past two years due to lack of investment, supply chain issues, scarcity of labor and equipment attrition. With crude demand set to remain robust and eventually surpass pre-covid record, most of the domestic fracking capacity is on the verge of being exhausted. In this context, Liberty management sees elevated demand for its reactivated fleet that supports the clients’ long-term development plans. In the third quarter, the company sees some 10% sequential revenue growth, plus higher margins on improved activity and pricing. However, cost inflation might dent some of that.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 142.15% due to these changes.
VGM Scores
At this time, Liberty Oilfield Services has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Liberty Oilfield Services has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Liberty Oilfield Services belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Halliburton (HAL - Free Report) , has gained 11.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Halliburton reported revenues of $5.07 billion in the last reported quarter, representing a year-over-year change of +36.9%. EPS of $0.49 for the same period compares with $0.26 a year ago.
For the current quarter, Halliburton is expected to post earnings of $0.54 per share, indicating a change of +92.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Halliburton. Also, the stock has a VGM Score of C.
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Liberty Oilfield Services (LBRT) Up 10% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 10% 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 Q2 Earnings Beat
Liberty Energy announced second-quarter 2022 earnings per share of 55 cents, which handily beat the Zacks Consensus Estimate of 18 cents and almost doubled from the year-earlier bottom line of 29 cents.
The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution, higher activity and increased service pricing, which more than offset rising costs.
Total revenues came in at $942.6 million, ahead of the Zacks Consensus Estimate of $875 million and 62.2% above the year-ago level of $581.3 million.
Meanwhile, second-quarter adjusted EBITDA was $196.1 million against the prior-year quarter figure of $36.6 million.
Balance Sheet & Capital Expenditure
As of Jun 30, Liberty had approximately $41.5 million in cash and cash equivalents. The pressure pumper’s long-term debt of $252.9 million represented a debt-to-capitalization of 16%. Further, the company’s liquidity — cash balance, plus revolving credit facility — amounted to $240 million.
In the reported quarter, the company spent $127 million on its capital program.
Guidance
The Ukraine conflict and sweeping international curbs on Moscow have aggravated the oil supply shortage. This means upstream operators are drilling more wells to increase output that has remained depressed over the past two years due to lack of investment, supply chain issues, scarcity of labor and equipment attrition. With crude demand set to remain robust and eventually surpass pre-covid record, most of the domestic fracking capacity is on the verge of being exhausted. In this context, Liberty management sees elevated demand for its reactivated fleet that supports the clients’ long-term development plans. In the third quarter, the company sees some 10% sequential revenue growth, plus higher margins on improved activity and pricing. However, cost inflation might dent some of that.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 142.15% due to these changes.
VGM Scores
At this time, Liberty Oilfield Services has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Liberty Oilfield Services has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Liberty Oilfield Services belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Halliburton (HAL - Free Report) , has gained 11.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Halliburton reported revenues of $5.07 billion in the last reported quarter, representing a year-over-year change of +36.9%. EPS of $0.49 for the same period compares with $0.26 a year ago.
For the current quarter, Halliburton is expected to post earnings of $0.54 per share, indicating a change of +92.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Halliburton. Also, the stock has a VGM Score of C.