NYSE$NINEQ

Nine Energy Service Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Nine Energy's Q3 2023 performance was affected by activity declines and operational inefficiencies, but the company anticipates a recovery in Q4.

Nine Energy Service reported Q3 2023 revenues of $140.6 million, a net loss of $(13.3) million, and adjusted EBITDA of $11.6 million. The company's revenue was within its original guidance range, but activity declines and operational inefficiencies impacted profitability. Nine anticipates Q4 revenue and earnings to be flat to slightly up sequentially.

  • Q3 revenue was in line with expectations, within the original guidance.
  • Activity declines and operational inefficiencies related to weather and frac delays impacted revenue and profitability in August.
  • Cementing was impacted by rig declines, while completion tool revenue decreased due to reduced international sales and U.S. completion activity.
  • The company anticipates 2024 activity to increase over current levels and expects Q4 revenue and earnings to be flat to slightly up sequentially to Q3.

Headline financials

Total Revenue

$141M

Previous: $167M-16.0%
EPS (adj)

-$0.39

Previous: $0.39-200.0%
Adjusted EBITDA

$11.6M

Previous: $32.6M-64.4%
Depreciation & Amortization

$10.2M

Previous: $9.5M+7.4%
Capital Expenditures

-$16.1M

Previous: -$9.36M-71.8%
Free Cash Flow

-$29.3M

Previous: $4.93M-695.9%
Net Income

-$13.3M

Previous: $14.3M-192.8%
Operating Income

-$813K

Previous: $19.8M-104.1%
Gross Profit

$131M

Previous: -$9M+1560.0%
Cash & Equivalents

$12.2M

Previous: $21.5M-43.4%
Total Assets

$387M

Previous: $407M-5.1%
Stock-Based Comp

$580K

Previous: $521K+11.3%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$141M

Q3 2023-16%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Nine Energy Service anticipates Q4 revenue and earnings to be flat to slightly up sequentially to Q3, with overall activity levels remaining mostly flat and pricing stabilizing.

Tailwinds

  • Expect Q4 revenue and earnings to be flat to slightly up sequentially to Q3.
  • Overall activity levels are anticipated to remain mostly flat.
  • Pricing is expected to stabilize.
  • No recurrence of August's challenges is anticipated in Q4.
  • Cementing revenue is anticipated to be slightly higher than Q3.

Headwinds

  • Holidays, weather, and budget exhaustion are expected to impact operations, especially in the Northeast.
  • Anticipate normal holiday and winter seasonality.
  • Cementing was impacted by the continued rig declines in Q3.
  • Completion tool revenue was down quarter over quarter.
  • Company is a spot-market business and financial results move closely with U.S. land activity levels.

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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