NYSE$NINEQ

Nine Energy Service Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Nine Energy reported strong growth in Q1 2022, driven by improved activity and pricing across most service lines, surpassing revenue guidance and achieving sequential growth.

Nine Energy Service reported Q1 2022 revenues of $116.9 million, exceeding their initial guidance. The company experienced a net loss of $(6.9) million, but achieved an adjusted EBITDA of $12.2 million. Cementing revenues increased 31% quarter over quarter.

  • Total liquidity position of $74.6 million as of March 31, 2022.
  • Revenue reached $116.9 million, net loss was $(6.9) million, and adjusted EBITDA was $12.2 million.
  • Basic loss per share for Q1 2022 was $(0.23).
  • Cementing revenues increased approximately 31% quarter over quarter.

Headline financials

Total Revenue

$117M

Previous: $66.6M+75.5%
EPS (adj)

-$0.22

Previous: -$0.85+74.1%
Adjusted EBITDA

$12.2M

Previous: -$3.4M+458.8%
Depreciation & Amortization

$10.4M

Previous: $11.9M-12.5%
Capital Expenditures

-$876K

Previous: $2.43M-136.1%
Free Cash Flow

-$7.78M

Previous: -$8.25M+5.7%
Net Income

-$6.9M

Previous: -$8.25M+16.3%
Operating Income

$1.08M

Previous: -$17.3M+106.3%
Gross Profit

-$7.39M

Previous: -$8.66M+14.7%
Cash & Equivalents

$19.9M

Previous: $53M-62.4%
Total Assets

$391M

Previous: $419M-6.7%
Stock-Based Comp

$927K

Previous: $2.01M-53.9%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$117M

Q1 2022+75.5%vs Q1 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The company anticipates revenue and adjusted EBITDA to improve sequentially for Q2. The oilfield service industry remains under-supplied from both an equipment and labor perspective and they anticipate this will continue to be a catalyst for further price increases for the remainder of the year, however, this will be coupled with cost inflation.

Tailwinds

  • The outlook for the remainder of 2022 and 2023 continues to be very positive.
  • Anticipate further price increases for the remainder of the year.
  • Expect revenue for all of our service lines to increase for Q2.
  • Anticipate revenue and adjusted EBITDA to improve sequentially for Q2.
  • Well positioned with geographic and service line diversity to grow earnings with relatively low capital requirements.

Headwinds

  • Cost inflation will be coupled with price increases.
  • The oilfield service industry remains under-supplied from both an equipment and labor perspective.
  • Market activity may be affected by geopolitical and economic developments in the U.S. and globally.
  • Ongoing COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, performance of contracts and supply chain disruptions.
  • Pricing pressures, reduced sales, or reduced market share as a result of intense competition in the markets for the Company’s dissolvable plug products.

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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