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Liberty Oilfield Services (LBRT) Up 0.1% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 0.1% 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 drivers.
Liberty Energy Q4 Earnings Beat
Liberty Energy announced fourth-quarter 2022 earnings per share of 82 cents, which handily beat the Zacks Consensus Estimate of 71 cents and turned around from the year-earlier loss of 31 cents.
The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing, which more than offset weather and holiday-related effects.
Total revenues came in at $1.2 billion, which surpassed the Zacks Consensus Estimate by 2.6% and were 79.2% higher than the year-ago level of $683.7 million.
Meanwhile, fourth-quarter adjusted EBITDA was $295.5 million against the prior-year quarter figure of just $20.6 million.
As part of its shareholder return policy, LBRT repurchased $125 million of its stock at an average price of $15.29 apiece since July and reinstated a quarterly cash dividend of 5 cents in the fourth quarter.
Balance Sheet & Capital Expenditure
As of Dec 31, Liberty had approximately $43.7 million in cash and cash equivalents. The pressure pumper’s long-term debt of $217.4 million represented a debt-to-capitalization of 12.7%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $351 million.
In the reported quarter, the company spent $116.1 million on its capital program. For the full-year 2022, the figure came in at $428.2 million.
Guidance
Despite growing risk in financial markets due to the aggressive monetary tightening by central banks, Liberty management believes that the energy market remains tight, with China gradually emerging out of its stifling zero-COVID policy and rising global demand for air travel. 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 (particularly in North America) 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 domestic oil and natural gas output set to reach new highs, the existing fracking capacity seems inadequate to cater to this demand uptick.
In this context, Liberty management sees elevated demand for its next-generation fleet that supports clients’ requirements for quality and reliability. The company is diversifying its offerings with an exciting suite of new technology developments and by partnering with top producers. So, there is s sense that LBRT is set to experience a multi-year cycle of thriving customer demand. This should also translate into “rising free cash flow and strong returns to our shareholders in the years ahead.”
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 11.07% due to these changes.
VGM Scores
Currently, Liberty Oilfield Services has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, 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, Liberty Oilfield Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Liberty Oilfield Services (LBRT) Up 0.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Liberty Oilfield Services (LBRT - Free Report) . Shares have added about 0.1% 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 drivers.
Liberty Energy Q4 Earnings Beat
Liberty Energy announced fourth-quarter 2022 earnings per share of 82 cents, which handily beat the Zacks Consensus Estimate of 71 cents and turned around from the year-earlier loss of 31 cents.
The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing, which more than offset weather and holiday-related effects.
Total revenues came in at $1.2 billion, which surpassed the Zacks Consensus Estimate by 2.6% and were 79.2% higher than the year-ago level of $683.7 million.
Meanwhile, fourth-quarter adjusted EBITDA was $295.5 million against the prior-year quarter figure of just $20.6 million.
As part of its shareholder return policy, LBRT repurchased $125 million of its stock at an average price of $15.29 apiece since July and reinstated a quarterly cash dividend of 5 cents in the fourth quarter.
Balance Sheet & Capital Expenditure
As of Dec 31, Liberty had approximately $43.7 million in cash and cash equivalents. The pressure pumper’s long-term debt of $217.4 million represented a debt-to-capitalization of 12.7%. Further, the company’s liquidity — cash balance plus revolving credit facility — amounted to $351 million.
In the reported quarter, the company spent $116.1 million on its capital program. For the full-year 2022, the figure came in at $428.2 million.
Guidance
Despite growing risk in financial markets due to the aggressive monetary tightening by central banks, Liberty management believes that the energy market remains tight, with China gradually emerging out of its stifling zero-COVID policy and rising global demand for air travel. 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 (particularly in North America) 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 domestic oil and natural gas output set to reach new highs, the existing fracking capacity seems inadequate to cater to this demand uptick.
In this context, Liberty management sees elevated demand for its next-generation fleet that supports clients’ requirements for quality and reliability. The company is diversifying its offerings with an exciting suite of new technology developments and by partnering with top producers. So, there is s sense that LBRT is set to experience a multi-year cycle of thriving customer demand. This should also translate into “rising free cash flow and strong returns to our shareholders in the years ahead.”
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 11.07% due to these changes.
VGM Scores
Currently, Liberty Oilfield Services has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, 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, Liberty Oilfield Services has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.