NYSE$NINEQ

Nine Energy Service Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Nine Energy's Q1 2020 results were announced, revealing a revenue of $146.6 million, a net loss of $(300.9) million, and an adjusted EBITDA of $10.3 million.

Nine Energy Service reported a revenue of $146.6 million for Q1 2020. The company experienced a net loss of $(300.9) million, which includes goodwill impairment charges of $296.2 million. Adjusted EBITDA stood at $10.3 million. The company's revenue fell slightly below the original guidance range, while adjusted EBITDA was within the guidance.

  • Revenue for Q1 2020 was $146.6 million.
  • Net loss for Q1 2020 was $(300.9) million, including $296.2 million in goodwill impairment charges.
  • Adjusted EBITDA for Q1 2020 was $10.3 million.
  • Cash and cash equivalents as of March 31, 2020, were $90.1 million.

Headline financials

Total Revenue

$147M

Previous: $230M-36.2%
EPS (adj)

-$0.51

Previous: $0.76-167.1%
Adjusted EBITDA

$10.3M

No prior period
Depreciation & Amortization

$12.7M

No prior period
Free Cash Flow

-$301M

Previous: $17.3M-1838.3%
Net Income

-$301M

Previous: $17.3M-1838.3%
Operating Income

-$304M

Previous: $26.9M-1227.4%
Gross Profit

$20.6M

Previous: $51.1M-59.7%
Cash & Equivalents

$90.1M

Previous: $31.2M+189.2%
Total Assets

$535M

Previous: $1.13B-52.6%
Stock-Based Comp

$3.59M

Previous: $3.15M+13.9%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$147M

Q1 2020-36.2%vs Q1 2019
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Forward guidance

The company faces an extremely volatile market due to global demand reductions related to the COVID-19 pandemic and a flood of supply. Customers are cutting capex plans, affecting all service lines with revenue and adjusted EBITDA declines.

Tailwinds

  • The company has a strong liquidity position of $183.6 million as of March 31, 2020.
  • The liquidity consists of $90.1 million of cash on the balance sheet.
  • There is an undrawn ABL credit facility with $93.5 million of availability.
  • The company has a sizeable accounts receivable balance of $92.6 million.
  • Inventories balance of $63.1 million.

Headwinds

  • The energy industry is suffering from significant global demand reductions related to the COVID-19 pandemic.
  • There is a flood of supply hitting the market.
  • Customers are cutting 2020 capex plans.
  • Rigs are being dropped.
  • Frac crews are being released, affecting all service lines with meaningful revenue and adjusted EBITDA declines.

Historical earnings impact

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

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

-3.5%

Avg return

Earnings day

+1.4%

Avg return

5 days after

-4.1%

Avg return

30 days after

36%

13 / 36 earnings

Positive

+31.8%

Q1 2020

Best reaction

-49.1%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2025-22.1%-13.2%-34.2%
Q2 2025-3.8%-16.5%-9.2%
Q1 2025+14.8%+16.0%-17.2%
Q4 2024+6.9%+16.0%-6.6%
Q3 2024+6.2%+32.2%+67.7%
Q2 2024-6.9%-12.1%-27.4%
Q1 2024-9.5%-11.9%-29.2%
Q4 2023+6.7%+1.0%+23.2%
Q3 2023-30.0%
Q2 2023-4.6%
Q1 2023-19.5%
Q4 2022-28.6%
Q3 2022+19.7%
Q2 2022-5.5%
Q1 2022-4.6%
Q4 2021+24.0%
Q3 2021+10.2%
Q2 2021-10.4%
Q1 2021-3.3%
Q4 2020-7.8%
Q3 2020+0.0%
Q2 2020-15.0%
Q1 2020+31.8%
Q4 2019-49.1%
Q3 2019+4.6%
Q2 2019-9.4%
Q1 2019+8.3%
Q4 2016-14.1%
Q4 2018-16.3%
Q3 2017-11.0%
Q3 2018-14.4%
Q2 2018-4.0%
Q2 2017-4.0%
Q1 2018+15.0%
Q1 2017+15.0%
Q4 2017+5.0%
Q3 2016
Q2 2016
Q1 2016

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