NYSE$NINEQ

Nine Energy Service Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Nine Energy reported mixed results, with revenue exceeding guidance but a net loss recorded.

Nine Energy Service reported Q2 2022 revenues of $142.3 million, exceeding their initial guidance. Despite the revenue beat, the company experienced a net loss of $(1.0) million, but achieved an adjusted EBITDA of $18.9 million.

  • Total liquidity position of $74.5 million as of June 30, 2022.
  • Revenue reached $142.3 million.
  • Net loss of $(1.0) million was reported.
  • Adjusted EBITDA was $18.9 million.

Headline financials

Total Revenue

$142M

Previous: $84.8M+67.8%
EPS (adj)

-$0.01

Previous: -$0.78+98.7%
Adjusted EBITDA

$18.9M

Previous: -$400K+4825.0%
Depreciation & Amortization

$10.3M

Previous: $11.5M-10.4%
Capital Expenditures

-$3.94M

Previous: $692K-669.9%
Free Cash Flow

-$4.92M

Previous: -$24.5M+79.9%
Net Income

-$978K

Previous: -$24.5M+96.0%
Operating Income

$6.42M

Previous: -$16.5M+138.9%
Gross Profit

-$8.28M

Previous: -$10.7M+22.3%
Cash & Equivalents

$22.4M

Previous: $33.1M-32.4%
Total Assets

$396M

Previous: $395M+0.3%
Stock-Based Comp

$495K

Previous: $1.03M-51.8%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$142M

Q2 2022+67.8%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Nine Energy anticipates sequential improvement in revenue, adjusted EBITDA, and cash flow for Q3 2022, driven by geographic and service line diversity and opportunities for further price increases and volume growth.

Tailwinds

  • Revenue, adjusted EBITDA and cash flow to improve sequentially for Q3.
  • Geographic and service line diversity positions the company well for further growth.
  • Increased profitability over the last two quarters.
  • Additional runway to implement net price increases within service lines.
  • Opportunity to increase volumes for tools.

Headwinds

  • Magnitude of any potential recessionary pressures is difficult to gauge.
  • Shortage of qualified labor and equipment in the industry.
  • Capital equipment orders being placed are delayed up to 12 months.
  • Any incremental activity added throughout the remainder of this year and into 2023 will exacerbate labor and equipment shortage.
  • Potential impact of recessionary pressures on North American shale and short-cycle projects.

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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