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Liberty Energy (LBRT) to Report Q2 Earnings: What's in Store?

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Liberty Energy Inc. (LBRT - Free Report) is set to report second-quarter earnings on Jul 17, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 62 cents per share and revenues of $1.18 billion.

Let’s delve into the factors that might have influenced LBRT’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.

Highlights of Q1 Earnings

In the last reported quarter, the Denver, CO-based oilfield service company’s earnings missed the consensus mark. LBRT reported an earnings per share of 48 cents, which was 6 cents lower than the Zacks Consensus Estimate. This was primarily due to poor equipment and services execution and lower activity in the reported quarter. Revenues of $1.07 billion also missed the Zacks Consensus Estimate by 0.9%. LBRT’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed the mark in three, delivering an average surprise of -1.21%.

Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter 2024 earnings of 62 cents per share has witnessed no upward revision and four downward movements in the past 7 days. The estimated figure indicates a 28.7% year-over-year bottom-line decline. The Zacks Consensus Estimate for revenues indicates a deterioration of 1.52% from the year-ago period. 

Factors to Consider

The appreciation in LBRT's costs is expected to have hurt its bottom line performance. The company’s operating expenses are projected to have reached $1.03 billion in the second quarter, which is 4.6% up from last quarter’s level of $957.7 million. Its cost of services is expected to have increased from $782.7 million to $862.2 million in the same time frame.

On a positive note, LBRT’s revenues are likely to have improved in the quarter to be reported. Our model predicts second-quarter revenues to increase to $1.18 billion from the last reported quarter’s level of $1.07 billion. This can be attributed to continued strong demand in the frac industry and stable pricing.

What Does Our Model Say?

The proven Zacks model does not conclusively show an earnings beat for Liberty Energy 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. However, that’s not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -4.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LBRT currently carries a Zacks Rank #3.

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.

TechnipFMC (FTI - Free Report) has an Earnings ESP of +9.21% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25. You can see the complete list of today’s Zacks #1 Rank stocks here.

FTI has a trailing four-quarter average earnings surprise of 5.42%. Valued at around $11.49 billion, FTI’s shares have risen 52.2% in a year.

Expro Group Holdings (XPRO - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25.

XPRO has a trailing four-quarter average earnings surprise of 78.41%. Valued at around $2.5 billion, XPRO’s shares have risen 9.8% in a year.

Baker Hughes (BKR - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25.

Baker Hughes is valued at $11.49 billion. BKR has a trailing four-quarter average earnings surprise of 11.40%.

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

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