Yahoo Finance ProPetro (PUMP) Up 0.8% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for ProPetro Holding (PUMP). Shares have added about 0.8% in that time frame, underperforming 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 Q1 Earnings and Revenues Beat Estimates
ProPetro Holding first-quarter 2024 earnings per share of 18 cents beat the Zacks Consensus Estimate of 8 cents. The outperformance could be primarily attributed to improved pricing and increased activity in the reported quarter. The bottom line, however, declined from the year-ago quarter’s reported level of 40 cents.
Revenues of $405.8 million beat the consensus mark of $400 million. This was due to improved pricing and fleet repositioning, additional net pricing gains, a favorable job mix and strong Hydraulic Fracturing and Wireline performance. However, the figure declined 4.2% from the year-ago quarter’s level of $423.6 million.
Adjusted EBITDA amounted to $93.4 million, up 45.3% from $64.3 million reported in the previous quarter. The outperformance was primarily attributable to higher activity and stable pricing during the reported quarter. The reported figure also beat our estimate of $84.3 million.
The company declared that it increased its share repurchase program authorization by $100 million to a total of $200 million on April 24, 2024. The program has been extended to May 2025.
In the reported quarter, the company repurchased and retired 3 million shares for $23 million. To date, the company has retired a total of 8.8 million shares, representing about 8% of the outstanding shares when the program began.
Pressure Pumping
ProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to PUMP's total revenues in the quarter under review.
Service revenues from this unit increased 16.7% to $405.8 million from the prior-year quarter’s level. The figure was higher than our estimate of $388.4 million.
Costs & Financial Position
Total costs and expenses were $375.5 million for the first quarter, down 1.7% from the prior-year quarter’s level. The cost of services (exclusive of depreciation and amortization) was $288.6 million compared with $280.5 million in the comparable period of 2023. Depreciation and amortization totaled $52.2 million compared with $38.3 million in the comparable period of 2023. The company recorded $39.8 million in capital expenditure.
As of Mar 31, PUMP had approximately $46.5 million in cash and cash equivalents. Including cash and $45 million under its revolving credit facility, the company had total liquidity worth $202 million at March-end 2023. Long-term debt amounted to $45 million. The total debt-to-total capital was 4.3%.
Net cash provided by operating activities increased to $74.8 million this quarter, up from $69.7 million last quarter. Free cash flow also turned positive this quarter, reaching $41 million compared to a negative $1.7 million in the prior quarter.
Guidance
ProPetro expects effective fleet utilization to be in the range of 14-15 for the second quarter of 2024.
It anticipates total incurred capital expenditures to be between $200 million and $250 million for full year 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 22.22% due to these changes.
VGM Scores
Currently, ProPetro has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise ProPetro has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
ProPetro is part of the Zacks Oil and Gas - Field Services industry. Over the past month, FMC Technologies (FTI), a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2024 more than a month ago.
FMC Technologies reported revenues of $2.04 billion in the last reported quarter, representing a year-over-year change of +18.9%. EPS of $0.22 for the same period compares with $0 a year ago.
FMC Technologies is expected to post earnings of $0.31 per share for the current quarter, representing a year-over-year change of +210%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for FMC Technologies. Also, the stock has a VGM Score of B.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ProPetro Holding Corp. (PUMP) : Free Stock Analysis Report
TechnipFMC plc (FTI) : Free Stock Analysis Report
