NYSE$NPKI

Newpark Resources Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Newpark Resources reported results for Q1 2020

Newpark Resources reported a net loss of $12.1 million, or ($0.14) per share, for the first quarter of 2020. Total revenues for the first quarter of 2020 were $164.6 million compared to $211.5 million for the first quarter of 2019.

  • Total revenues for the first quarter of 2020 were $164.6 million.
  • Net loss for the first quarter of 2020 was $12.1 million, or ($0.14) per share
  • 57% of first quarter 2020 consolidated revenues were derived outside of the U.S. land E&P market.
  • Company purchased 15% of outstanding bonds during the quarter, using available liquidity under bank facility.

Headline financials

Total Revenue

$165M

Previous: $211M-22.2%
EPS (adj)

-$0.12

Previous: $0.04-400.0%
Capital Expenditures

-$6.65M

Previous: -$17.5M+61.9%
Free Cash Flow

-$18.8M

Previous: -$16.2M-16.1%
Net Income

-$12.1M

Previous: $1.28M-1047.6%
Operating Income

-$5.89M

Previous: $5.68M-203.6%
Gross Profit

$18.5M

Previous: $36.5M-49.4%
Cash & Equivalents

$49.1M

Previous: $54.5M-10.0%
Total Assets

$867M

Previous: $930M-6.8%
Stock-Based Comp

$1.59M

Previous: $4.97M-68.0%

Revenue & EPS history

Newpark Resources · Revenue · Quarterly

$165M

Q1 2020-22.2%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Company continues to manage through the impact of the COVID-19 pandemic.

Tailwinds

  • Company has been working diligently over the last several years to reduce dependency on the US shale market, executing strategic actions across both segments.
  • Company has strengthened position and diversified revenue base.
  • Heavy IOC and NOC concentration in both the international and Gulf of Mexico markets will result in greater revenue stability relative to U.S. land.
  • Accelerating growth in the utilities and other non-E&P markets remains a significant focus, as the economy reopens.
  • Company joined the fight against COVID-19, leveraging chemical blending capacity and expertise to help meet the increased need for a variety of cleaning products

Headwinds

  • Unprecedented collapse of the oil & gas industry created by the demand destruction of the coronavirus and the resulting imbalance of supply and demand, has caused the price of oil to decline to historical lows.
  • Collapse in oil prices is going to have long lasting effects on the U.S. land market, requiring additional structural action to right-size for the new market reality in Fluids Systems segment.
  • All regions within Fluids Systems are expected to experience some impact from the collapse in oil prices.
  • Rental and service activity remained relatively stable during the first quarter, aside from a modest COVID-related slowdown due to logistical limitations in March.
  • Product sales declined to $4 million in the first quarter, as several anticipated sales orders in the U.S. and European markets were delayed by customers citing growing market uncertainty related to the COVID-19 shutdown.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.1%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+6.9%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+25.5%

Q1 2025

Best reaction

-20.4%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.8%-3.9%-11.3%
Q4 2025+4.3%-4.3%+2.2%
Q3 2025-5.1%-3.5%-8.4%
Q1 2025+25.5%+31.1%+33.9%
Q4 2024-5.1%-14.2%-7.6%
Q3 2024-4.3%-2.4%+1.3%
Q2 2024+9.6%+1.9%+7.4%
Q1 2024+2.5%+6.3%+22.4%
Q4 2023-1.3%+1.9%+17.4%
Q3 2023+3.4%+2.3%-1.0%
Q2 2023-4.5%-4.7%+8.3%
Q1 2023+2.0%-2.0%-8.2%
Q4 2022-3.2%-5.4%-15.0%
Q3 2022-6.3%+1.1%+8.7%
Q2 2022-15.9%-23.4%-17.4%
Q1 2022+11.0%+6.9%+26.6%
Q4 2021-4.9%-5.9%+7.5%
Q3 2021+2.1%+2.6%-15.8%
Q2 2021-20.4%-23.2%-18.6%
Q1 2021+6.1%+11.8%+31.4%
Q4 2020+0.7%+9.9%+27.1%
Q3 2020+0.8%+3.7%+103.7%
Q2 2020+0.0%+4.8%+1.6%
Q1 2020+10.2%+35.6%+110.2%
Q4 2019-16.9%-22.8%-45.1%
Q3 2019-18.3%-6.7%-20.2%
Q2 2019+14.1%+5.4%-1.0%
Q1 2019-17.6%-14.8%-15.3%
Q4 2018+9.3%+10.5%-5.8%
Q3 2018-0.6%+0.5%-3.0%
Q2 2018+12.6%+16.3%+13.7%
Q1 2018+6.2%+8.3%+9.8%
Q4 2017-3.7%-2.4%+7.3%
Q3 2017-4.9%+2.7%-4.9%
Q2 2017+6.8%+15.0%+2.7%
Q1 2017-4.4%-3.1%-3.8%
Q4 2016+5.8%+7.1%-12.3%
Q3 2016-4.4%-13.1%+13.9%
Q2 2016+7.5%+6.1%+27.6%
Q1 2016-12.5%
Q4 2015-9.7%
Q3 2015+3.5%
Q2 2015-5.9%
Q1 2015-5.5%
Q4 2014+9.8%
Q3 2014+5.8%
Q2 2014+14.4%
Q1 2014+4.7%
Q4 2013+3.4%
Q3 2013-1.2%
Q2 2013-4.9%
Q4 2012+17.6%
Q1 2013-3.3%
Q3 2012+2.6%
Q2 2012+7.8%
Q1 2011-1.0%
Q1 2012+1.0%
Q4 2011-1.6%
Q1 2010-1.6%
Q4 2009-1.6%
Q4 2010-1.6%
Q3 2011-4.4%
Q3 2010-4.4%
Q2 2011-0.3%
Q2 2010-0.3%

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