We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Liberty Oilfield Services (LBRT) Up 8.8% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 8.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Liberty Energy Q3 Earnings Beat
Liberty Energy announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents and turned around from the year-earlier loss of 22 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 $1.2 billion, ahead of the Zacks Consensus Estimate of $1 billion and 81.8% above the year-ago level of $653.7 million.
Meanwhile, third-quarter adjusted EBITDA was $276.9 million against the prior-year quarter figure of just $32 million.
As part of its shareholder return policy, LBRT repurchased $70 million of its stock at an average price of $14.89 apiece and reinstated a quarterly cash dividend of 5 cents.
Balance Sheet & Capital Expenditure
As of Sep 30, Liberty had approximately $24 million in cash and cash equivalents. The pressure pumper’s long-term debt of $252.7 million represented a debt-to-capitalization of 15.2%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $298 million.
In the reported quarter, the company spent $95 million on its capital program.
Guidance
Despite growing risk in financial markets due to the aggressive monetary tightening by central banks and the fallout from China’s zero-COVID lockdown policy, Liberty management believes that the energy market remains tight. On top of this, the OPEC+ supply cut, sanctions on Russian oil and limited availability of spare production capacity are likely to further strengthen the demand for North American energy.
This means upstream operators are drilling more wells to increase output that has remained depressed over the past two years due to the 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 next-generation fleet that supports the clients’ requirements for quality and reliability. Notwithstanding holiday and seasonal weather, the company sees fourth-quarter results in line with the strong third quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 29.09% due to these changes.
VGM Scores
At this time, Liberty Oilfield Services has a great Growth Score of A, though it is lagging a lot 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 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 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 #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Liberty Oilfield Services (LBRT) Up 8.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 8.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Liberty Energy Q3 Earnings Beat
Liberty Energy announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents and turned around from the year-earlier loss of 22 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 $1.2 billion, ahead of the Zacks Consensus Estimate of $1 billion and 81.8% above the year-ago level of $653.7 million.
Meanwhile, third-quarter adjusted EBITDA was $276.9 million against the prior-year quarter figure of just $32 million.
As part of its shareholder return policy, LBRT repurchased $70 million of its stock at an average price of $14.89 apiece and reinstated a quarterly cash dividend of 5 cents.
Balance Sheet & Capital Expenditure
As of Sep 30, Liberty had approximately $24 million in cash and cash equivalents. The pressure pumper’s long-term debt of $252.7 million represented a debt-to-capitalization of 15.2%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $298 million.
In the reported quarter, the company spent $95 million on its capital program.
Guidance
Despite growing risk in financial markets due to the aggressive monetary tightening by central banks and the fallout from China’s zero-COVID lockdown policy, Liberty management believes that the energy market remains tight. On top of this, the OPEC+ supply cut, sanctions on Russian oil and limited availability of spare production capacity are likely to further strengthen the demand for North American energy.
This means upstream operators are drilling more wells to increase output that has remained depressed over the past two years due to the 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 next-generation fleet that supports the clients’ requirements for quality and reliability. Notwithstanding holiday and seasonal weather, the company sees fourth-quarter results in line with the strong third quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 29.09% due to these changes.
VGM Scores
At this time, Liberty Oilfield Services has a great Growth Score of A, though it is lagging a lot 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 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 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 #2 (Buy). We expect an above average return from the stock in the next few months.