NYSE$NINEQ
Nine Energy Service Inc · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Nine Energy reported mixed results in Q4 2019, with revenue exceeding guidance but adjusted EBITDA falling within the expected range.
Nine Energy Service reported Q4 2019 revenue of $163.4 million, outperforming its initial guidance. However, the company experienced a net loss of $(220.5) million, which includes significant impairment charges. Adjusted EBITDA for the quarter was $11.6 million, aligning with the company's guidance.
- Q4 revenue outperformed management's original guidance, while adjusted EBITDA fell within the guidance range.
- Net loss included impairments of $106.3 million for the Coiled Tubing service line and $95.0 million for the Completion Tools service line.
- The company's cash balance remained strong at $93.0 million, despite interest, capex, and retention bonus payments.
- Market share remained stable across most service lines, but pricing concessions impacted margins.
Headline financials
Revenue & EPS history
Nine Energy · Revenue · Quarterly
$163M
Forward guidance
Q1 2020 is off to a slower start versus this time in 2019, and the company anticipates Q1 2020 being relatively flat to Q4 2019.
Tailwinds
- Effectively commercialized our low-temperature dissolvable plug for Q1 2020
- Timeline for our new high-temp dissolvable and composite plug remain on schedule.
- Successfully completed the sale of our Production Solutions segment
- Closed wireline operations in Canada, which will be accretive to ROIC, adjusted EBITDA margins and cash generation.
- Nine’s percentage of U.S. stages completed increasing over 100 basis points in 2019.
Headwinds
- Q1 2020 is off to a slower start versus this time in 2019
- Anticipate Q1 2020 being relatively flat to Q4 2019
- Drilling and completion activity declined in Q4 due to holidays, weather and budget exhaustion.
- Coiled Tubing has been the hardest hit service line from a pricing and activity perspective
- An over-supply of large diameter units coming into the market, coupled with a decrease in activity across regions.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 8 quarterly earnings reports
-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
| Quarter | Report date | Reaction (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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