NYSE$NINEQ

Nine Energy Service Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Nine Energy reported Q4 2021 results with revenue above guidance, driven by strong performances in cementing and completion tools.

Nine Energy Service reported Q4 2021 revenues of $105.1 million, a net loss of $(15.7) million, and adjusted EBITDA of $4.6 million. The company outperformed its Q4 revenue guidance, driven by strong performances in both cementing and completion tools. They anticipate North American capital spending will increase by at least 20% in 2022.

  • Total liquidity position of $64.7 million as of December 31, 2021
  • Revenue for the fourth quarter of 2021 was $105.1 million
  • Net loss for the fourth quarter of 2021 was $(15.7) million
  • Adjusted EBITDA for the fourth quarter of 2021 was $4.6 million

Headline financials

Total Revenue

$105M

Previous: $62M+69.6%
EPS (adj)

-$0.52

Previous: -$1.20+56.7%
Adjusted EBITDA

$4.6M

Previous: -$13.9M+133.1%
Depreciation & Amortization

$10.7M

Previous: $11.8M-9.4%
Capital Expenditures

$10.6M

Previous: $9.42M+12.4%
Free Cash Flow

-$24.3M

Previous: -$19M-28.1%
Net Income

-$15.7M

Previous: -$35.4M+55.5%
Operating Income

-$8.14M

Previous: -$27.3M+70.1%
Gross Profit

$4.71M

Previous: -$16.8M+128.1%
Cash & Equivalents

$21.5M

Previous: $68.9M-68.8%
Total Assets

$382M

Previous: $443M-13.8%
Stock-Based Comp

$1.22M

Previous: $2.03M-40.1%

Revenue & EPS history

Nine Energy · Revenue · Quarterly

$105M

Q4 2021+69.6%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Nine Energy anticipates revenue and earnings to improve each quarter throughout 2022. They anticipate North American capital spending will increase by at least 20% in 2022.

Tailwinds

  • Expect Q1 will be better than Q4 with sequential revenue increases
  • Anticipate revenue and earnings to improve each quarter throughout 2022
  • Service line diversity
  • Forward-leaning technology
  • Geographic diversity, and balanced commodity exposure

Headwinds

  • I do not see any near-term solution for the labor shortages
  • Customers try to increase activity
  • This should move pricing leverage back to the service providers
  • Difficult market conditions in 2021
  • Net cash used in operating activities of $(40.4) million

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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