NYSE$NINEQ

Nine Energy Service Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Nine Energy reported strong Q3 2022 results, driven by price increases and increased volumes within completion tools.

Nine Energy Service reported Q3 2022 revenues of $167.4 million, net income of $14.3 million, and adjusted EBITDA of $32.6 million. The company's results exceeded original revenue guidance, representing an 18% sequential increase. The company also repurchased $13.0 million par value of bonds for $10.1 million of cash.

  • Q3 2022 revenue, net income and adjusted EBITDA were $167.4 million, $14.3 million and $32.6 million, respectively.
  • Third quarter 2022 basic earnings per share was $0.46.
  • The Company generated ROIC of 28.8% for the third quarter of 2022.
  • Total liquidity position of $88.2 million as of September 30, 2022.

Headline financials

Total Revenue

$167M

Previous: $92.9M+80.3%
EPS (adj)

$0.39

Previous: -$0.51+176.5%
Adjusted EBITDA

$32.6M

Previous: $4.5M+624.4%
Depreciation & Amortization

$9.5M

Previous: $11M-13.6%
Capital Expenditures

-$9.36M

Previous: $1.71M-646.8%
Free Cash Flow

$4.93M

Previous: -$16.1M+130.7%
Net Income

$14.3M

Previous: -$16.1M+189.0%
Operating Income

$19.8M

Previous: -$8.08M+344.6%
Gross Profit

-$9M

Previous: -$10.6M+14.8%
Cash & Equivalents

$21.5M

Previous: $30M-28.3%
Total Assets

$407M

Previous: $386M+5.6%
Stock-Based Comp

$521K

Previous: $1.15M-54.8%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$167M

Q3 2022+80.3%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The company anticipates revenue to be relatively flat sequentially for Q4, with growth returning as we enter Q1 of 2023.

Tailwinds

  • North American shale production will be critical for global supply.
  • Capital discipline for both operators and oilfield service providers will continue into 2023 keeping the market tight.
  • Constraints on oilfield service equipment will continue.
  • Incremental rig activity moving forward should put upward pressure on pricing and drive net margin.
  • Nine's geographic and service line diversity positions the company well for this next cycle.

Headwinds

  • The overall market has been volatile.
  • There are and will continue to be numerous factors that will influence global supply and demand.
  • Expect to see some seasonality impacts into Q4.
  • Customers remain focused on staying within capital budgets.
  • Anticipate revenue to be relatively flat sequentially for Q4.

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 2017-4.0%
Q2 2018-4.0%
Q1 2018+15.0%
Q1 2017+15.0%
Q4 2017+5.0%
Q3 2016
Q2 2016
Q1 2016

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