It has been about a month since the last earnings report for ProPetro Holding (PUMP Quick QuotePUMP - Free Report) . Shares have added about 6.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ProPetro 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 catalysts.

ProPetro Beats on Q1 Earnings, Revenues Down Y/Y

ProPetro Holding reported first-quarter 2020 adjusted net income per share of 21 cents, beating the Zacks Consensus Estimate of 17 cents, attributable to lower cost of services along with better-than-expected pressure pumping revenues. Precisely, this oilfield service provider’s top line of $386.9 million surpassed the Zacks Consensus Estimate of $384 million, driven by operational efficiencies.

However, the bottom line declined from the year-ago figure of 67 cents. This underperformance is due to decline in activity levels and pricing. 

Further, ProPetro’s revenues of $395.07 million lagged the Zacks Consensus Estimate by 2.20%. Moreover, the top line fell 27.7% year over year.

Adjusted EBITDA in the first quarter amounted to $74.9 million, decreasing from $150.3 million a year ago.

Pressure Pumping Division

This Midland, TX-based company through its Pressure Pumping division provides hydraulic fracturing, cementing and acidizing functions. The business accounted for 97.9% of the company's total revenues in the quarter under review. Service revenues were down more than 27% from the year-ago period to $386.9 million as the number of hydraulic fracturing fleets fell significantly.

Costs & Expenses

ProPetro reported cost of services of $300.8 million in the first quarter, down 21.1% from the year-ago quarter. General and administrative expenses came in at $24.9 million, up from $18.5 million in the year-ago period.

Balance Sheet & Capital Expenditure

As of Mar 31, ProPetro had cash and cash equivalents worth $143.7 million while its long-term debt was $110 million. The company’s total debt to total capital was 10.26%. ProPetro also has $50.4 million under its revolving credit facility. Capital expenditure for the March quarter totaled $40.09 million, down 53.45% from the level in first-quarter 2019.

Guidance

ProPetro anticipates onshore completion activity to continue at a lower rate in the second half of 2020 as the oversupply of crude oil is absorbed by increasing demand as economic activity improves.

 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted -91.69% due to these changes.

VGM Scores

At this time, ProPetro has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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 indicates a downward shift. Notably, ProPetro has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.