NYSE$NINEQ

Nine Energy Service Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Nine Energy reported mixed results in Q1 2021, with revenue increasing despite a net loss and negative adjusted EBITDA.

Nine Energy Service reported a revenue increase of 8% to $66.6 million in Q1 2021, driven by strong activity in cementing and completion tools, despite a net loss of $(8.2) million and adjusted EBITDA of $(3.4) million. The company repurchased $26.3 million par value of bonds for $8.4 million, reducing debt outstanding. They anticipate a challenging environment in 2021 but expect sequential revenue increases in Q2 and Q3.

  • Revenue increased by approximately 8% despite a decrease in EIA reported completed wells.
  • The company repurchased additional bonds, lowering annual cash interest expense and reducing overall debt.
  • Progress was made with the commercialization of new dissolvable plug technology.
  • Q2 is expected to be better sequentially than Q1 with double-digit sequential revenue increases, followed by sequential revenue increases in Q3 over Q2.

Headline financials

Total Revenue

$66.6M

Previous: $147M-54.6%
EPS (adj)

-$0.85

Previous: -$0.51-66.7%
Adjusted EBITDA

-$3.4M

Previous: $10.3M-133.0%
Depreciation & Amortization

$11.9M

Previous: $12.7M-6.4%
Capital Expenditures

$2.43M

No prior period
Free Cash Flow

-$8.25M

Previous: -$301M+97.3%
Net Income

-$8.25M

Previous: -$301M+97.3%
Operating Income

-$17.3M

Previous: -$304M+94.3%
Gross Profit

-$8.66M

Previous: $20.6M-142.0%
Cash & Equivalents

$53M

Previous: $90.1M-41.2%
Total Assets

$419M

Previous: $535M-21.7%
Stock-Based Comp

$2.01M

Previous: $3.59M-44.0%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$66.6M

Q1 2021-54.6%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Nine Energy anticipates a challenging environment in 2021 but expects sequential revenue increases in Q2 and Q3.

Tailwinds

  • Q2 is expected to be better sequentially than Q1 with double-digit sequential revenue increases.
  • Sequential revenue increases are expected in Q3 over Q2.
  • The company is making progress with the commercialization of new dissolvable plug technology.
  • Pricing has stabilized across service lines.
  • The company repurchased additional bonds on the open market.

Headwinds

  • There is anticipation of a challenging environment in 2021.
  • The company saw a much slower start in January versus last year.
  • There were weather-related shut-downs in February.
  • Pricing remains extremely depressed.
  • There is some tightness, specifically in the labor market.

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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