NYSE$NINEQ

Nine Energy Service Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Nine Energy reported first quarter results, with revenue within original guidance.

Nine Energy Service reported first quarter 2023 revenues of $163.4 million, a net loss of $(6.1) million, and an adjusted EBITDA of $25.0 million. The company's performance was as expected, with revenue falling within the original guidance range. However, they anticipate a slight sequential decrease in revenue for Q2 due to softening market conditions and pricing pressure.

  • First quarter revenue was $163.4 million, within the original guidance.
  • Net loss for the quarter was $(6.1) million, or $(0.19) per diluted share.
  • Adjusted EBITDA for the quarter was $25.0 million.
  • Company expects Q2 revenue to be down slightly sequentially to Q1 due to market softening.

Headline financials

Total Revenue

$163M

Previous: $117M+39.7%
EPS (adj)

$0.01

Previous: -$0.22+104.5%
Adjusted EBITDA

$25M

Previous: $12.2M+104.9%
Depreciation & Amortization

$10.3M

Previous: $10.4M-0.9%
Capital Expenditures

-$6.34M

Previous: -$876K-624.1%
Free Cash Flow

-$12.5M

Previous: -$7.78M-60.2%
Net Income

-$6.11M

Previous: -$6.9M+11.5%
Operating Income

$6.88M

Previous: $1.08M+536.0%
Gross Profit

$156M

Previous: -$7.39M+2207.9%
Cash & Equivalents

$21.4M

Previous: $19.9M+7.2%
Total Assets

$427M

Previous: $391M+9.2%
Stock-Based Comp

$489K

Previous: $927K-47.2%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$163M

Q1 2023+39.7%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Nine Energy anticipates a slight sequential decrease in revenue for Q2 compared to Q1, due to softening market conditions and pricing pressure, particularly in the Northeast and Haynesville areas.

Tailwinds

  • Cementing service line continues to be a strong performer.
  • Company believes it has one of the top completion tool portfolios in the U.S.
  • Increased the total number of StingerTM Dissolvable plugs sold by approximately 23%, due in large part to a significant international sale.
  • Increased completion tool revenue by approximately 7%, quarter-over-quarter.
  • Company has demonstrated ability to navigate through all market cycles and quickly increase earnings in conjunction with activity growth

Headwinds

  • Softening in the market due largely to the decline in natural gas prices over the past several months.
  • Decrease in activity and pricing thus far in 2023 versus Q4 levels.
  • Wireline and coiled tubing markets remain fragmented and highly competitive.
  • Activity levels thus far in Q2 are down.
  • Company continues to see some pricing pressure from select customers, especially in the Northeast and Haynesville.

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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