NASDAQ$KLXE

KLX Energy Services Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record results driven by price and utilization improvements and prudent cost management.

KLX Energy Services Holdings, Inc. reported a revenue of $223.3 million and net income of $13.2 million for Q4 2022. The company's strategy of analyzing key performance indicators to improve price and asset utilization led to materially improved results. KLX anticipates Q1 2023 revenue to be between $225.0 million to $230.0 million and Adjusted EBITDA to be in the range of $30.0 million to $35.0 million.

  • Revenue for the fourth quarter of 2022 totaled $223.3 million.
  • Net income for the fourth quarter of 2022 was $13.2 million.
  • Adjusted EBITDA for the fourth quarter of 2022 was $37.3 million.
  • The company ended the quarter with $57.4 million of cash.

Headline financials

Total Revenue

$223M

Previous: $145M+54.0%
EPS (adj)

$1.06

Previous: -$1.98+153.5%
Adjusted EBITDA

$37.3M

Previous: $3.6M+936.1%
Adjusted EBITDA Margin

16.7%

No prior period
Net Working Capital

$72.1M

No prior period
Capital Expenditures

$9.5M

No prior period
Free Cash Flow

$2.3M

Previous: -$15.9M+114.5%
Net Income

$13.2M

Previous: -$13.2M+200.0%
Operating Income

$22.2M

Previous: -$7.8M+384.6%
Gross Profit

$56.7M

Previous: $2.9M+1855.2%
Cash & Equivalents

$57.4M

Previous: $28M+105.0%
Total Assets

$466M

Previous: $388M+20.2%
Stock-Based Comp

$800K

Previous: $500K+60.0%

Revenue & EPS history

KLX Energy Services · Revenue · Quarterly

$223M

Q4 2022+54%vs Q4 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

KLX Energy Services · $223M total across 3 segments · Q4 2022

  • Northeast/Mid-Con
    $82.4M+125.1%
  • Southwest
    $74.8M+120.0%
  • Rocky Mountains
    $66.1M+177.7%

Forward guidance

KLX Energy Services expects first quarter revenue to be between $225.0 million to $230.0 million and first quarter Adjusted EBITDA to be in the range of $30.0 million to $35.0 million. For the full year, the company expects 2023 revenue and Adjusted EBITDA margin to be in the range of $925.0 million to $975.0 million and 16.0% to 18.0%, respectively. Full year 2023 capital spending is expected to range between $55.0 and $65.0 million.

Tailwinds

  • First quarter 2023 revenue guidance ranges of $225.0 million to $230.0 million.
  • First quarter 2023 Adjusted EBITDA guidance ranges of $30.0 million to $35.0 million.
  • Full year 2023 revenue guidance ranges of $925.0 million to $975.0 million.
  • Full year 2023 Adjusted EBITDA margin guidance ranges of 16.0% to 18.0%.
  • Full year 2023 capital spending between $55.0 and $65.0 million.

Headwinds

  • Q1 is perennially impacted by weather.
  • Q1 is impacted by customer budget finalization timing.
  • Q1 is impacted by elevated personnel costs due to payroll and unemployment taxes.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-2.4%

Avg return

Earnings day

-4.2%

Avg return

5 days after

-7.6%

Avg return

30 days after

39%

13 / 33 earnings

Positive

+28.4%

Q1 2020

Best reaction

-27.4%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.4%-2.3%-26.4%
Q4 2025-9.2%-12.0%+35.6%
Q3 2025-8.3%-11.7%-15.7%
Q1 2025-15.0%-4.3%-14.6%
Q4 2024-6.0%-7.8%-54.2%
Q3 2024-5.8%-2.4%+33.7%
Q2 2024+5.6%+5.6%+8.0%
Q1 2024-9.7%-16.5%-29.5%
Q4 2023-1.7%-8.9%-19.8%
Q3 2023-6.6%-6.1%-12.3%
Q2 2023+7.5%+2.3%+1.0%
Q1 2023+12.0%+8.5%-4.9%
Q4 2022+7.6%-6.6%-15.1%
Q3 2022-5.3%-3.1%-23.9%
Q2 2022+15.0%+10.8%+16.1%
Q1 2022-5.3%-23.1%+25.0%
Q4 2021-8.7%-25.8%-45.2%
Q3 2021-11.4%-22.8%+6.9%
Q2 2021+0.5%-11.6%-22.0%
Q1 2021-22.0%-28.9%-34.7%
Q4 2020-26.2%-43.0%-13.9%
Q3 2020+6.5%-4.0%-6.5%
Q2 2020-14.8%-15.2%-47.2%
Q1 2020+28.4%+66.7%+3.4%
Q4 2019-27.4%-19.0%-37.4%
Q3 2019+4.7%+31.8%+4.2%
Q2 2019-10.3%-6.3%-12.0%
Q1 2019-9.2%-9.2%-16.5%
Q1 2017-5.3%-2.0%+5.6%
Q4 2017-5.3%-2.0%+5.6%
Q4 2018+4.4%-0.6%+14.0%
Q3 2018+27.4%+26.0%+22.9%
Q2 2018+5.4%+5.6%+18.2%

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