Liberty Energy (LBRT) Earnings Preview: What to Expect on October 16th

## Liberty Energy (LBRT) Earnings Preview: What to Expect on October 16th

Get ready for a crucial moment for Liberty Energy (LBRT) investors. The company is scheduled to release its quarterly earnings report on Wednesday, October 16th, 2024. Analysts are anticipating an earnings per share (EPS) of $0.61, which could mean good news for shareholders. But the real focus is on what Liberty Energy has to say about the future. Investors are hoping to hear about not only exceeding estimates but also receiving positive guidance for the next quarter.

For new investors, it’s important to remember that while earnings performance is important, market reactions are often driven by guidance. In other words, how optimistic or pessimistic the company is about its future performance can have a bigger impact on the stock price than simply meeting or beating current earnings expectations.

## Looking Back: Liberty Energy’s Recent Performance

Let’s take a look at Liberty Energy’s past performance and how the market reacted:

| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—||
| Q2 2024 | $0.61 | $0.61 | 2.0% |
| Q1 2024 | $0.56 | $0.48 | 3.0% |
| Q4 2023 | $0.57 | $0.54 | 6.0% |
| Q3 2023 | $0.75 | $0.85 | 7.0% |

As you can see, Liberty Energy missed EPS estimates in the previous earnings release. However, the share price still increased by 1.58% the following trading session, indicating a positive outlook for the company despite not meeting expectations.

## Market Sentiment and Analyst Insights

It’s crucial to understand market sentiment and expectations within the industry to get a clearer picture of Liberty Energy’s potential. Here’s a breakdown of the current outlook:

*

Consensus Rating:

The consensus rating for Liberty Energy is

Buy

, based on 4 analyst ratings. This suggests a positive outlook for the company’s future performance.
*

Average One-Year Price Target:

The average one-year price target for Liberty Energy is

$24.25

, indicating a potential upside of 18.81%. This means analysts believe the stock has room to grow over the next year.

## Comparing Liberty Energy to its Peers

To better understand Liberty Energy’s position within the industry, let’s compare it to three major players: Tidewater, Archrock, and USA Compression Partners.

| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside |
|—|—|—|—||
| Liberty Energy | Buy | $24.25 | 18.81% |
| Tidewater | Buy | $138.00 | 576.14% |
| Archrock | Outperform | $23.83 | 16.76% |
| USA Compression Partners | Neutral | $24.33 | 19.21% |

While Liberty Energy is currently rated as a Buy, Tidewater stands out with a significantly higher potential upside, indicating strong investor confidence in its growth prospects. Archrock, with an Outperform rating, also showcases a promising outlook. USA Compression Partners, on the other hand, holds a Neutral rating, suggesting more balanced expectations from analysts.

## Key Financial Metrics: A Deeper Look

Let’s delve into some key financial metrics to understand Liberty Energy’s financial health and performance compared to its peers:

| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Liberty Energy | Buy | -2.94% | $200.78M | 5.67% |
| Tidewater | Buy | 57.81% | $102.46M | 4.71% |
| Archrock | Outperform | 9.28% | $112.24M | 3.83% |
| USA Compression Partners | Neutral | 13.72% | $91.84M | 21.53% |

Key Takeaway:

Liberty Energy ranks at the bottom for revenue growth with a negative growth rate, suggesting challenges in the recent past. It occupies a middle position in terms of gross profit, demonstrating moderate performance. However, the company falls at the bottom for Return on Equity (ROE), indicating lower profitability compared to its peers.

## Liberty Energy: A Closer Look

Liberty Energy is a leading provider of hydraulic fracturing services, particularly pressure pumping, across major basins in North America. The company’s acquisition of Schlumberger’s OneStim business segment in 2020 cemented its position as one of the largest pressure pumpers in the region. This acquisition also expanded its offerings to include wireline operations, two Permian frac sand mines, and an enhanced technological portfolio.

Market Capitalization:

Liberty Energy’s market capitalization is smaller compared to industry averages, possibly reflecting factors such as growth expectations or operational capacity.

Revenue Decline:

Over the past three months (ending June 30, 2024), Liberty Energy experienced a decline in revenue growth of approximately -2.94%. This indicates a reduction in the company’s top-line earnings and suggests challenges compared to its competitors.

Net Margin:

Despite the revenue decline, Liberty Energy’s net margin surpasses industry standards, highlighting the company’s exceptional financial performance. Its impressive 9.35% net margin demonstrates effective cost management and strong profitability.

Return on Equity (ROE):

Liberty Energy’s ROE stands out, exceeding industry averages. With a robust ROE of 5.67%, the company showcases effective use of equity capital and solid financial performance.

Return on Assets (ROA):

Liberty Energy’s ROA also outperforms industry benchmarks, reaching 3.42%. This signifies efficient asset management and strong financial health.

Debt Management:

Liberty Energy maintains a healthy debt-to-equity ratio below industry norms, indicating a solid financial structure with a ratio of 0.24.

To track all earnings releases for Liberty Energy, visit the earnings calendar on our site.

This analysis provides investors with a comprehensive overview of Liberty Energy’s upcoming earnings report. By understanding the company’s past performance, market sentiment, and key financial metrics, investors can make informed decisions about their investment strategies.