ProFrac Holding ACDC Earnings Preview: What to Expect on November 5th
ProFrac Holding ACDC, a leading provider of hydraulic fracturing and completion services to the North American oil and gas industry, is gearing up to release its latest quarterly earnings report on Tuesday, November 5th, 2024. Investors are eagerly awaiting the announcement, hoping for positive news that could propel the company’s stock price forward.
Analyst Expectations and Key Metrics
Analysts are predicting an earnings per share (EPS) of -$0.06 for the quarter. While this represents a loss, investors will be focused on whether the company can surpass these estimates and provide favorable guidance for the upcoming quarter. Guidance is often a key driver of stock price movements, as it offers insights into the company’s future prospects.
A Look Back: Recent Performance and Market Sentiment
During the previous quarter, ProFrac Holding missed EPS estimates by $0.14, resulting in a 5.49% drop in the share price the following day. This trend highlights the importance of exceeding expectations and delivering positive news to investors.
Over the past year, ProFrac Holding’s stock has experienced a 25.0% decline, leaving long-term shareholders disappointed. The upcoming earnings report presents an opportunity for the company to demonstrate its ability to turn the tide and regain investor confidence.
Analyst Sentiment and Peer Comparison
A total of 3 analysts have rated ProFrac Holding, with a consensus rating of Buy. The average one-year price target stands at $6.83, indicating a potential 14.6% upside.
To provide context, let’s compare ProFrac Holding to three prominent industry players: Select Water Solutions, Bristow Group, and National Energy Services.
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Select Water Solutions:
Analysts project an Outperform trajectory with an average one-year price target of $14.5, suggesting a potential 143.29% upside.*
Bristow Group:
Analysts have a Buy rating with an average one-year price target of $50.0, indicating a potential 738.93% upside.*
National Energy Services:
Analysts favor an Buy trajectory with an average one-year price target of $15.0, suggesting a potential 151.68% upside.Financial Health: Key Metrics to Watch
A closer look at ProFrac Holding’s financial metrics reveals some challenges:
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Revenue Growth:
The company experienced a revenue decline of approximately -18.3% as of June 30, 2024, trailing behind the average growth rate of its peers in the Energy sector.*
Net Margin:
ProFrac Holding’s net margin is below industry standards, indicating difficulties in achieving strong profitability.*
Return on Equity (ROE):
The company’s ROE is below industry benchmarks, signaling potential challenges in efficiently using equity capital.*
Return on Assets (ROA):
ProFrac Holding’s ROA is below industry averages, indicating potential challenges in efficiently utilizing assets.*
Debt Management:
While the company’s debt-to-equity ratio is below industry norms, it’s essential to monitor this metric for any signs of excessive leverage.Key Takeaways:
ProFrac Holding faces challenges in revenue growth and profitability, with its financial metrics lagging behind its peers. However, the company’s sound debt management structure provides a degree of stability. Investors should be aware of these factors and closely examine the earnings report for any indications of a turnaround strategy.
ProFrac Holding’s Business Overview
ProFrac Holding Corp. is a prominent player in the oil and gas sector, providing hydraulic fracturing, completion services, and complementary products and services to upstream oil and gas companies operating in North America. The company operates in three segments: stimulation services, manufacturing, and proppant production.
Stay Informed
For comprehensive coverage of all earnings releases for ProFrac Holding, visit our dedicated earnings calendar.