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Is Liberty (LBRT) Headed for Another Earnings Beat in Q3?
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Liberty Energy (LBRT - Free Report) is set to release third-quarter results on Oct 19. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 63 cents per share on revenues of $1.1 billion.
Let’s delve into the factors that might have influenced the provider of hydraulic fracturing and other auxiliary services to onshore exploration and production companies in North America in the September quarter. But it’s worth taking a look at LBRT’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last-reported quarter, the Denver, CO-based oilfield service company beat the consensus mark due to the impact of strong execution, higher activity and increased service pricing. LBRT had reported earnings per share of 55 cents, 37 cents higher than the Zacks Consensus Estimate. Revenues of $942.6 million generated by the firm also came in above the Zacks Consensus Estimate of $875 million.
LBRT beat the Zacks Consensus Estimate in two of the last four quarters, which resulted in an earnings surprise of 31.8%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the third-quarter bottom line has been revised 3.3% upward in the past seven days. The estimated figure indicates a 386.4% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 60.3% improvement from the year-ago period.
Factors to Consider
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 a 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, The elevated demand for its reactivated fleet is likely to have supported Liberty Energy’s clients’ long-term development plans. This, together with higher margins on improved activity and pricing, should have driven LBRT’s revenues and cash flows in the third quarter.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for LBRT this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Liberty has an Earnings ESP of +5.58% and a Zacks Rank #1.
Other Stocks to Consider
Liberty is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Murphy USA (MUSA - Free Report) has an Earnings ESP of +11.33% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 26.
For 2022, Murphy USA has a projected earnings growth rate of 63.4%. Valued at around $6.5 billion, MUSA has gained 67.3% in a year.
PBF Energy (PBF - Free Report) has an Earnings ESP of +3.15% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 27.
PBF topped the Zacks Consensus Estimate by an average of 78% in the trailing four quarters, including a 43.8% beat in Q2. PBF has gained 164.8% in a year.
Oceaneering International (OII - Free Report) has an Earnings ESP of +50% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 26.
The Zacks Consensus Estimate for OII’s 2022 earnings has been revised 33.3% upward over the past 60 days. Valued at around $882.3 million, Oceaneering International has lost 40.6% in a year.
Image: Bigstock
Is Liberty (LBRT) Headed for Another Earnings Beat in Q3?
Liberty Energy (LBRT - Free Report) is set to release third-quarter results on Oct 19. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 63 cents per share on revenues of $1.1 billion.
Let’s delve into the factors that might have influenced the provider of hydraulic fracturing and other auxiliary services to onshore exploration and production companies in North America in the September quarter. But it’s worth taking a look at LBRT’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last-reported quarter, the Denver, CO-based oilfield service company beat the consensus mark due to the impact of strong execution, higher activity and increased service pricing. LBRT had reported earnings per share of 55 cents, 37 cents higher than the Zacks Consensus Estimate. Revenues of $942.6 million generated by the firm also came in above the Zacks Consensus Estimate of $875 million.
LBRT beat the Zacks Consensus Estimate in two of the last four quarters, which resulted in an earnings surprise of 31.8%, on average. This is depicted in the graph below:
Liberty Energy Inc. Price and EPS Surprise
Liberty Energy Inc. price-eps-surprise | Liberty Energy Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has been revised 3.3% upward in the past seven days. The estimated figure indicates a 386.4% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 60.3% improvement from the year-ago period.
Factors to Consider
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 a 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, The elevated demand for its reactivated fleet is likely to have supported Liberty Energy’s clients’ long-term development plans. This, together with higher margins on improved activity and pricing, should have driven LBRT’s revenues and cash flows in the third quarter.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for LBRT this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Liberty has an Earnings ESP of +5.58% and a Zacks Rank #1.
Other Stocks to Consider
Liberty is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Murphy USA (MUSA - Free Report) has an Earnings ESP of +11.33% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 26.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, Murphy USA has a projected earnings growth rate of 63.4%. Valued at around $6.5 billion, MUSA has gained 67.3% in a year.
PBF Energy (PBF - Free Report) has an Earnings ESP of +3.15% and a Zacks Rank #1. The firm is scheduled to release earnings on Oct 27.
PBF topped the Zacks Consensus Estimate by an average of 78% in the trailing four quarters, including a 43.8% beat in Q2. PBF has gained 164.8% in a year.
Oceaneering International (OII - Free Report) has an Earnings ESP of +50% and a Zacks Rank #2. The firm is scheduled to release earnings on Oct 26.
The Zacks Consensus Estimate for OII’s 2022 earnings has been revised 33.3% upward over the past 60 days. Valued at around $882.3 million, Oceaneering International has lost 40.6% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.