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What's in the Offing for Solaris Oilfield's (SOI) Q3 Earnings?

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Solaris Oilfield Infrastructure, Inc.  is set to report third-quarter 2023 results on Oct 26, after the closing bell.

In the last reported quarter, the company’s earnings of 25 cents per share beat the Zacks Consensus Estimate of 20 cents.

The company beat the consensus estimates in the prior four quarters, the average earnings surprise being 18.8%. This is depicted in the graph below:

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of 20 cents has witnessed no upward revision and one downward movement over the past 30 days. The estimated figure suggests a decline of 16.7% from the prior-year reported number.

The consensus estimate for third-quarter revenues of $77 million indicates a 16.3% decline from the year-ago reported figure.

Factors to Consider

The pricing scenario of oil and natural gas was impressive in the third quarter. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.

The increase in oil prices likely boosted exploration and production activities, creating a heightened demand for oilfield services. Solaris Oilfield, known for offering innovative and cost-effective oilfield products, services and infrastructure, was poised for a positive business environment in the third quarter.

Nonetheless, a deceleration in drilling operations became apparent as upstream companies shifted their primary focus toward delivering returns to shareholders instead of aggressively increasing output. This slowdown in drilling activities is likely to have negatively impacted the demand for Solaris Oilfield’s services, resulting in an adverse impact on the company's financial performance in the third quarter.

Earnings Whispers

Our proven model does not indicate an earnings beat for Solaris Oilfield this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is -2.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Solaris Oilfield currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Viper Energy Partners LP (VNOM - Free Report) currently has an Earnings ESP of +15.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting a decline from the year-ago reported figure.

Antero Resources Corporation (AR - Free Report) has an Earnings ESP of +1,219.97% and is currently a Zacks #3 Ranked player.

The company is scheduled to release third-quarter results on Oct 25.

Antero Midstream Corporation (AM - Free Report) has an Earnings ESP of +8.17% and is a Zacks #2 Ranked player at present.

Antero Midstream is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for AM’s earnings is pegged at 21 cents per share, suggesting a year-over-year improvement of 5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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