NASDAQ$CHX

ChampionX Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

ChampionX reported Q4 2020 results, delivering revenue of $706.1 million and adjusted EBITDA of $108.6 million, marking a sequential increase of 25%.

ChampionX Corporation announced its fourth-quarter results for 2020, revealing a revenue of $706.1 million and a net income of $7.4 million. The company's adjusted EBITDA stood at $108.6 million. They also repaid $79.8 million of debt during the quarter.

  • Revenue of $706.1 million in Q4 2020.
  • Net income attributable to ChampionX of $7.4 million in Q4 2020; adjusted net income of $14.3 million.
  • Adjusted EBITDA of $108.6 million in Q4 2020.
  • Free cash flow of $107.6 million (15% of revenue) in Q4 2020; free cash flow of $115.5 million (16% of revenue) excluding acquisition-related expenses.

Headline financials

Total Revenue

$706M

Previous: $245M+188.1%
EPS (adj)

$0.07

Previous: -$0.06+216.7%
Adjusted EBITDA Margin

15.4%

No prior period
Income Before Taxes Margin

2.7%

No prior period
Free Cash Flow to Revenue Ratio

15.0%

No prior period
Capital Expenditures

$13M

Previous: $8.19M+58.6%
Free Cash Flow

$108M

Previous: $24.3M+342.5%
Net Income

$7.4M

Previous: -$1.57M+570.1%
Operating Income

$19M

Previous: -$10.6M+278.9%
Gross Profit

$166M

Previous: $72.6M+128.7%
Cash & Equivalents

$201M

Previous: $35.3M+470.8%
Total Assets

$3.48B

Previous: $1.92B+80.8%
Stock-Based Comp

$5.82M

Previous: $2.71M+115.1%

Revenue & EPS history

ChampionX · Revenue · Quarterly

$706M

Q4 2020+188.1%vs Q4 2019
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

ChampionX · $660M total across 4 segments · Q4 2020

  • Production Chemical Tech
    $447M
  • Production & Automation Tech
    $159M-22.0%
  • Reservoir Chemical Tech
    $30.9M
  • Drilling Technologies
    $23.6M-46.6%

Forward guidance

For the first quarter, the company expects revenue to be between $650 million and $700 million, and adjusted EBITDA of $90 million to $100 million, excluding winter storm impacts.

Tailwinds

  • Anticipated continued positive momentum in shorter-cycle North American land-oriented businesses.
  • Expect year-over-year margin improvement as we exit 2021.
  • Disciplined operating model
  • Differentiated products and technology
  • Robust free cash flow

Headwinds

  • Expect seasonal declines in international operations
  • Anticipate some near-term cost pressures as oilfield activity levels normalize versus the pandemic-induced trough levels of last year.
  • Assessing the first quarter impact of the severe winter storms in major oil producing basins
  • Guidance does not include the impact of extreme weather challenges experienced in February.
  • Potential continued impacts from the pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 12 quarterly earnings reports

Historical avg

+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

Earnings price reactions
QuarterReport dateReaction (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