NASDAQ$CHX
ChampionX Corporation · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
ChampionX's second quarter was marked by revenue of $298.9 million and a net loss attributable to ChampionX of $109.6 million.
ChampionX Corporation reported second-quarter results, which included revenue of $298.9 million and a net loss attributable to ChampionX of $109.6 million. Adjusted EBITDA was $34.5 million. The company highlighted the integration of legacy Apergy and legacy ChampionX is on track, expecting annualized run-rate synergies towards the high-end of the previously announced $25 to $35 million exiting 2020.
- Revenue of $298.9 million in Q2-20
- Net loss attributable to ChampionX of $109.6 million in Q2-20
- Adjusted EBITDA of $34.5 million in Q2-20
- Cash from operating activities of $48.8 million and free cash flow of $37.0 million, or 12% of revenue in Q2-20
Headline financials
Revenue & EPS history
ChampionX · Revenue · Quarterly
$299M
Revenue by segment
ChampionX · $281M total across 4 segments · Q2 2020
- Production Chemical Tech$136M—48.4%
- Production & Automation Tech$115M—40.8%
- Drilling Technologies$20.9M—7.5%
- Reservoir Chemical Tech$9.31M—3.3%
Forward guidance
ChampionX anticipates a modest sequential increase in revenue and adjusted EBITDA, driven by production-focused segments. Drilling Technologies revenue is expected to decrease sequentially.
Tailwinds
- Expect to see a modest sequential increase in revenue due to operators bringing production back on-line within production-focused segments.
- Expect a modest sequential increase in revenue and adjusted EBITDA on a consolidated basis.
- Integration is on-track and implementing plans to capture the $75 million in cost synergies within 24 months of closing, as well as drive additional revenue growth opportunities.
- Expect to be at the higher end of the previously announced $25 to $35 million of run rate cost synergies exiting 2020.
- Continue to maintain a strong balance sheet and generate positive free cash flow.
Headwinds
- Visibility remains challenging due to the uncertainty caused by the COVID pandemic
- Drilling Technologies revenue is expected to decrease sequentially, driven by continued low drilling activity in the third quarter.
- Seasonal impacts of holidays and E&P capital budget exhaustion are unclear at this time for the fourth quarter.
- Rapid reduction in worldwide E&P capital spending.
- Expect that sales of digital hardware equipment will continue to be impacted by reduced E&P capital spending.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 12 quarterly earnings reports
+0.7%
Avg return
Earnings day
+0.3%
Avg return
5 days after
+3.6%
Avg return
30 days after
56%
19 / 34 earnings
Positive
+20.5%
Q3 2022
Best reaction
-11.8%
Q4 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | — | — | — | |
| Q3 2025 | — | — | — | |
| Q2 2025 | — | — | — | |
| Q1 2025 | -2.2% | -0.4% | -2.3% | |
| Q4 2024 | -0.6% | +0.3% | +1.2% | |
| Q3 2024 | -1.8% | -1.5% | +5.5% | |
| Q2 2024 | -2.0% | -2.4% | -8.0% | |
| Q1 2024 | -0.3% | -1.7% | -6.5% | |
| Q4 2023 | +10.4% | +10.2% | +19.1% | |
| Q3 2023 | -8.4% | -12.6% | -13.2% | |
| Q2 2023 | +0.2% | +1.3% | +3.6% | |
| Q1 2023 | +0.1% | +1.4% | +2.7% | |
| Q4 2022 | -11.8% | -10.2% | -0.0% | |
| Q3 2022 | +20.5% | +17.3% | +27.5% | |
| Q2 2022 | -1.8% | +1.7% | +12.9% | |
| Q1 2022 | -1.6% | — | — | |
| Q4 2021 | -4.5% | — | — | |
| Q3 2021 | +2.8% | — | — | |
| Q2 2021 | +6.8% | — | — | |
| Q1 2021 | +4.8% | — | — | |
| Q4 2020 | +10.1% | — | — | |
| Q3 2020 | +5.5% | — | — | |
| Q2 2020 | +3.5% | — | — | |
| Q1 2020 | +5.9% | — | — | |
| Q4 2019 | -11.7% | — | — | |
| Q3 2019 | +0.5% | — | — | |
| Q2 2019 | +2.4% | — | — | |
| Q1 2019 | +1.5% | — | — | |
| Q4 2016 | +0.5% | — | — | |
| Q4 2018 | +0.5% | — | — | |
| Q3 2017 | +0.7% | — | — | |
| Q3 2018 | +0.7% | — | — | |
| Q2 2017 | +4.9% | — | — | |
| Q2 2018 | -1.2% | — | — | |
| Q1 2017 | -3.2% | — | — | |
| Q4 2017 | -3.2% | — | — | |
| Q1 2018 | -3.2% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro