NYSE$NINEQ

Nine Energy Service Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Nine Energy reported increased revenue and adjusted EBITDA, with revenue exceeding original guidance, driven by market share gains in the cementing division.

Nine Energy Service reported Q3 2024 revenues of $138.2 million, a net loss of $(10.1) million, and adjusted EBITDA of $14.3 million. Revenue exceeded the company's original guidance due to market share gains in the cementing division, which saw a 12% increase in revenue despite a declining rig count.

  • Revenue increased by approximately 4% quarter over quarter, despite a decline in the average US rig count.
  • Net loss improved sequentially, decreasing by approximately 28% for the third quarter of 2024.
  • Adjusted EBITDA increased by approximately 47% sequentially for the third quarter of 2024.
  • Cementing revenue increased by approximately 12% quarter over quarter, driven by market share gains.

Headline financials

Total Revenue

$138M

Previous: $141M-1.7%
EPS

-$0.26

Previous: -$0.39+33.3%
Adjusted EBITDA

$14.3M

Previous: $11.6M+23.3%
Depreciation & Amortization

$9.02M

Previous: $10.2M-11.5%
Capital Expenditures

-$11.5M

Previous: -$16.1M+28.3%
Free Cash Flow

-$21.7M

Previous: -$29.3M+26.2%
Net Income

-$10.1M

Previous: -$13.3M+23.5%
Operating Income

$2.45M

Previous: -$813K+401.5%
Gross Profit

$131M

Previous: $131M-0.3%
Cash & Equivalents

$15.7M

Previous: $12.2M+28.7%
Total Assets

$353M

Previous: $387M-8.7%
Stock-Based Comp

$837K

Previous: $580K+44.3%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$138M

Q3 2024-1.7%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The company anticipates Q4 revenue and profitability to be down compared to Q3 due to typical budget exhaustion, weather, holiday slow-downs, and an expected decrease in international tool sales. However, Nine remains positive on demand and the outlook for oil and natural gas, anticipating a moderate activity pick up in 2025 if commodity prices remain supportive.

Tailwinds

  • Positive on demand and the outlook for oil and natural gas
  • Well positioned in the natural gas basins
  • Earnings respond significantly and quickly with increased market activity
  • Service and commodity diversity is critical
  • Differentiated through technology and service offerings

Headwinds

  • Anticipate Q4 revenue and profitability to be down compared to Q3
  • Typical budget exhaustion
  • Weather slow-downs
  • Holiday slow-downs
  • Expected decrease in international tool sales

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 Q3 2024

Historical avgQ3 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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