NYSE$NINEQ

Nine Energy Service Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Nine Energy reported a challenging quarter impacted by declining US rig count and low natural gas prices. The company's revenue and earnings were affected, but it maintained a strong team and asset-light business model.

Nine Energy Service reported Q2 2024 revenues of $132.4 million, a net loss of $(14.0) million, and adjusted EBITDA of $9.7 million. The results were within the company's provided revenue guidance range. The company expects Q3 revenue and profitability to be relatively flat compared with Q2.

  • Revenue for Q2 2024 was $132.4 million.
  • Net loss for Q2 2024 was $(14.0) million, or $(0.40) per diluted share and $(0.40) per basic share.
  • Adjusted EBITDA for Q2 2024 was $9.7 million.
  • Total liquidity as of June 30, 2024, was $50.8 million.

Headline financials

Total Revenue

$132M

Previous: $161M-18.0%
EPS

-$0.40

Previous: -$0.08-400.0%
Adjusted EBITDA

$9.7M

Previous: $21.7M-55.3%
Depreciation & Amortization

$9.4M

Previous: $10.3M-8.7%
Capital Expenditures

-$8.13M

Previous: -$12.3M+34.0%
Free Cash Flow

-$22.2M

Previous: -$14.8M-49.3%
Net Income

-$14M

Previous: -$2.54M-453.4%
Operating Income

-$1.44M

Previous: $9.31M-115.4%
Gross Profit

$125M

Previous: $153M-18.3%
Cash & Equivalents

$26M

Previous: $41.1M-36.7%
Total Assets

$382M

Previous: $438M-12.9%
Stock-Based Comp

$807K

Previous: $522K+54.6%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$132M

Q2 2024-18%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The rig count in Q3 has been relatively flat since the end of Q2, and activity and pricing levels are mostly stable. Because of this, the company expects Q3 revenue and profitability to be relatively flat compared with Q2.

Tailwinds

  • Oil markets have remained mostly stable.
  • Positive on the medium and long-term outlook for the gas markets.
  • Exposure to the gas markets provide a significant catalyst for growth if natural gas prices recover.
  • Asset-light business model allows to shift quickly with the market.
  • Differentiated in service and technology offerings.

Headwinds

  • Natural gas prices averaging below $2.15 for the first half of 2024, leading to lower activity levels and increased whitespace across all basins.
  • Challenging quarter with tough market and a difficult competitive landscape.
  • Cementing revenue was down slightly in Q2.
  • Coiled tubing revenue was down due to whitespace in the Permian, as well as sustained lower activity levels in the Haynesville.
  • Extremely difficult to predict commodity prices.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-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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