NYSE$NINEQ

Nine Energy Service Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Nine Energy reported mixed results with revenue in line with expectations but net loss reported for Q2 2021.

Nine Energy Service reported Q2 2021 revenues of $84.8 million and a net loss of $(24.5) million, or $(0.81) basic loss per share. Adjusted EBITDA was $(0.4) million. The company's revenue exceeded the midpoint of its guidance, representing a 27% sequential increase.

  • Q2 revenue was mostly in-line with expectations, falling in the upper range of Management’s original guidance.
  • Dissolvable Stingers sales increased by over 40% quarter over quarter.
  • Activity in the gassy regions remained steady, with most of the activity growth coming out of the Permian.
  • Expect Q3 will be better than Q2 with double-digit sequential revenue increases.

Headline financials

Total Revenue

$84.8M

Previous: $52.7M+60.9%
EPS (adj)

-$0.78

Previous: -$1.13+31.0%
Adjusted EBITDA

-$400K

Previous: -$11M+96.4%
Depreciation & Amortization

$11.5M

Previous: $12.6M-8.7%
Capital Expenditures

$692K

No prior period
Free Cash Flow

-$24.5M

Previous: -$24.2M-1.5%
Net Income

-$24.5M

Previous: -$24.2M-1.5%
Operating Income

-$16.5M

Previous: -$26.9M+38.8%
Gross Profit

-$10.7M

Previous: -$3.97M-168.8%
Cash & Equivalents

$33.1M

Previous: $88.7M-62.6%
Total Assets

$395M

Previous: $469M-15.8%
Stock-Based Comp

$1.03M

Previous: $2.11M-51.2%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$84.8M

Q2 2021+60.9%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Nine Energy anticipates only moderate activity increases for the remainder of 2021 and still expects Q3 will be better than Q2 with double-digit sequential revenue increases.

Tailwinds

  • Q2 revenue was mostly in-line with expectations, falling in the upper range of Management’s original guidance.
  • Dissolvable Stingers sales increased by over 40% quarter over quarter.
  • Activity in the gassy regions remained steady, with most of the activity growth coming out of the Permian.
  • Expect Q3 will be better than Q2 with double-digit sequential revenue increases.
  • Implementing net price increases within cementing and coiled tubing service lines.

Headwinds

  • Wrote-down $2.4 million of tools inventory as we replace legacy tools and transition customers to our newest technology, which negatively impacted our operating results, including adjusted EBITDA.
  • Pricing remains depressed.
  • Continue to navigate cost inflation.
  • Finding and retaining qualified labor is our largest challenge today.
  • Public customers remain committed to capital discipline.

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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