Hydraulic fracturing services provider ProFrac (NASDAQ: ACDC) will be announcing earnings results this Thursday before market open. Here’s what investors should know.
ProFrac beat analysts’ revenue expectations last quarter, reporting revenues of $498.1 million, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Is ProFrac a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ProFrac’s revenue to grow 33.1% year on year, a reversal from the 29.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ProFrac has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ProFrac’s peers in the oilfield services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ProPetro delivered year-on-year revenue growth of 20.9%, beating analysts’ expectations by 14.1%, and TETRA Technologies reported revenues up 9.6%, topping estimates by 7.7%. ProPetro traded up 4.1% following the results while TETRA Technologies was also up 7%.
Read our full analysis of ProPetro’s results here and TETRA Technologies’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the oilfield services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.2% on average over the last month. ProFrac is down 10.4% during the same time and is heading into earnings with an average analyst price target of $5.49 (compared to the current share price of $4.26).
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