Liberty Energy (LBRT) to Report Q3 Earnings: What's in Store?
Liberty Energy LBRT is set to release third-quarter results on Oct 18. The Zacks Consensus Estimate for earnings is pegged at a profit of 74 cents per share on revenues of $1.14 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 Q2 Earnings & Surprise History
In the previous reported quarter, the Denver, CO-based oilfield service company missed the consensus mark. LBRT had reported earnings per share of 87 cents, 3 cents lower than the Zacks Consensus Estimate. This was due to higher costs and expenses. Revenues of $1.2 billion also missed the Zacks Consensus Estimate by 5.1% due to delays in drilling execution.
LBRT’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, delivering an average earnings surprise of 12.1%.
Liberty Energy Inc. Price and EPS Surprise
Liberty Energy Inc. price-eps-surprise | Liberty Energy Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for earnings has remained unchanged in the past seven days. The estimated figure indicates a 5.1% year-over-year decline. The Zacks Consensus Estimate for revenues indicates a decline of 4.4% from the year-ago period’s level.
Factors to Consider
LBRT's revenues are likely to have suffered in the quarter to be reported. Our model predicts third-quarter revenues to be down $1.11 billion from the year-ago quarter’s level of $1.12 billion. This can be attributed to a weak global macroeconomic environment with high interest rates.
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 $943.6 million in the third quarter, down 6.1% from the year-ago period’s level. Its cost of services is expected to have decreased from $874.5 million to $801 million during the same time frame.
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 beating estimates. 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 -0.45%.
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 from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Berry Corporation BRY has an Earnings ESP of +45.52% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 1.
Berry has a trailing four-quarter average earnings surprise of 419.76%. Valued at around $635.5 million, BRY’s shares have risen 0.6% in a year.
California Resources CRC has an Earnings ESP of +22.05% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 1.
California Resources has a trailing four-quarter average earnings surprise of 419.76%. Valued at around $3.8 billion, CRC’s shares have risen 35.8% in a year.
Delek US Holdings DK has an Earnings ESP of +3.62% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov 7.
Delek US Holdings has a projected earnings growth rate of 5,950% for 2023. Valued at around $1.68 billion, DK’s shares have lost 2.5% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
Berry Corporation (BRY) : Free Stock Analysis Report
California Resources Corporation (CRC) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
