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Liberty Energy Q4 Earnings on Deck: Here's How It May Fare
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Liberty Energy Inc. (LBRT - Free Report) , a leading provider of hydraulic services and related technologies to onshore oil and natural gas exploration and production companies in North America, is set to report fourth-quarter earnings on Jan. 29, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 10 cents per share and the same for revenues is pinned at $980.8 million.
Let us delve into the factors that might have influenced LBRT’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of LBRT’s Q3 Earnings
In the previous reported quarter, the Denver, CO-based oilfield service company’s earnings missed the consensus mark. LBRT reported an earnings per share of 45 cents, which was 10 cents lower than the Zacks Consensus Estimate. This was primarily due to poor services execution and equipment coupled with lower activity in the reported quarter. Revenues of $1.14 billion also missed the Zacks Consensus Estimate by 0.2%. LBRT’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the mark in two, delivering an average negative surprise of 8.22%.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings of 10 cents per share has not witnessed any movement in the past seven days. The estimated figure indicates an 81.48% year-over-year bottom-line decline. The Zacks Consensus Estimate for revenues indicates a deterioration of 8.76% from the year-ago period.
Factors to Consider Ahead of LBRT’s Q4 Release
LBRT's revenues are likely to have suffered in the quarter to be reported. Our model predicts fourth-quarter revenues to be down to $986.6 million from the year-ago quarter’s level of $1.07 billion. This can be attributed to a weak global macroeconomic environment. The demand for hydraulic fracturing services tends to be cyclical, based on energy prices and exploration activity. If energy prices remain volatile or low, demand for these services could diminish. This is likely to have weighed on the company’s earnings and cash flows.
On a positive note, the reduction in LBRT's costs is likely to have boosted its bottom line. The company’s operating expenses are likely to have reached $950.2 million in the fourth quarter, down 0.1% from the year-ago period’s level. Its cost of services is expected to have decreased from $777.3 million to $774 million. On the other hand, general and administrative expenses are anticipated to drop from $55.3 million to $54.8 million in the same period. These cost reductions should provide modest relief, helping to partially offset the impact of lower revenues.
What Does Our Model Say About LBRT?
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 is not the case here.
Earnings ESP of LBRT: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LBRT’s Zacks Rank: LBRT currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
While an earnings beat looks uncertain for Liberty, here are some firms from the energy space that you may want to consider on the basis of our model:
The firm is scheduled to release earnings on March 3. Notably, the Zacks Consensus Estimate for California’s 2025 earnings per share indicates 9.54% year-over-year growth. Valued at around $4.97 billion, CRC’s shares have risen 7.4% in a year.
Ovintiv (OVV - Free Report) has an Earnings ESP of +6.29% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 26.
In the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved up 3.3%. Valued at around $11.82 billion, OVV has gained 7.1% in a year.
APACorporation (APA - Free Report) has an Earnings ESP of +6.62% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 27.
In the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved up 55.6%. Valued at around $8.77 billion, APA has lost 24% in a year.
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Liberty Energy Q4 Earnings on Deck: Here's How It May Fare
Liberty Energy Inc. (LBRT - Free Report) , a leading provider of hydraulic services and related technologies to onshore oil and natural gas exploration and production companies in North America, is set to report fourth-quarter earnings on Jan. 29, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 10 cents per share and the same for revenues is pinned at $980.8 million.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let us delve into the factors that might have influenced LBRT’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of LBRT’s Q3 Earnings
In the previous reported quarter, the Denver, CO-based oilfield service company’s earnings missed the consensus mark. LBRT reported an earnings per share of 45 cents, which was 10 cents lower than the Zacks Consensus Estimate. This was primarily due to poor services execution and equipment coupled with lower activity in the reported quarter. Revenues of $1.14 billion also missed the Zacks Consensus Estimate by 0.2%. LBRT’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the mark in two, delivering an average negative surprise of 8.22%.
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 of LBRT
The Zacks Consensus Estimate for fourth-quarter 2024 earnings of 10 cents per share has not witnessed any movement in the past seven days. The estimated figure indicates an 81.48% year-over-year bottom-line decline. The Zacks Consensus Estimate for revenues indicates a deterioration of 8.76% from the year-ago period.
Factors to Consider Ahead of LBRT’s Q4 Release
LBRT's revenues are likely to have suffered in the quarter to be reported. Our model predicts fourth-quarter revenues to be down to $986.6 million from the year-ago quarter’s level of $1.07 billion. This can be attributed to a weak global macroeconomic environment. The demand for hydraulic fracturing services tends to be cyclical, based on energy prices and exploration activity. If energy prices remain volatile or low, demand for these services could diminish. This is likely to have weighed on the company’s earnings and cash flows.
On a positive note, the reduction in LBRT's costs is likely to have boosted its bottom line. The company’s operating expenses are likely to have reached $950.2 million in the fourth quarter, down 0.1% from the year-ago period’s level. Its cost of services is expected to have decreased from $777.3 million to $774 million. On the other hand, general and administrative expenses are anticipated to drop from $55.3 million to $54.8 million in the same period. These cost reductions should provide modest relief, helping to partially offset the impact of lower revenues.
What Does Our Model Say About LBRT?
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 is not the case here.
Earnings ESP of LBRT: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LBRT’s Zacks Rank: LBRT currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
While an earnings beat looks uncertain for Liberty, here are some firms from the energy space that you may want to consider on the basis of our model:
California Resources (CRC - Free Report) has an Earnings ESP of +2.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The firm is scheduled to release earnings on March 3. Notably, the Zacks Consensus Estimate for California’s 2025 earnings per share indicates 9.54% year-over-year growth. Valued at around $4.97 billion, CRC’s shares have risen 7.4% in a year.
Ovintiv (OVV - Free Report) has an Earnings ESP of +6.29% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 26.
In the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved up 3.3%. Valued at around $11.82 billion, OVV has gained 7.1% in a year.
APA Corporation (APA - Free Report) has an Earnings ESP of +6.62% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 27.
In the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved up 55.6%. Valued at around $8.77 billion, APA has lost 24% in a year.