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What's in the Offing for Liberty Energy (LBRT) in Q1 Earnings?

Zacks Equity Research
·4 min read

Liberty Energy Inc. (LBRT) is set to report first-quarter 2024 earnings on Apr 17, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 53 cents per share on revenues of $1.08 billion.

Let’s delve into the factors that might have influenced LBRT’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.

Highlights of Q4 Earnings

In the previous reported quarter, the Denver, CO-based oilfield service company’s earnings missed the consensus mark. LBRT reported an EPS of 54 cents, 3 cents lower than the Zacks Consensus Estimate. This was primarily due to poor equipment and services execution, and lower activity in the reported quarter. Revenues of $1.07 billion also missed the Zacks Consensus Estimate by 0.56%.

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LBRT’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the mark in two, delivering an average surprise of 4.69%.

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter 2024 earnings of 53 cents per share has witnessed no upward revision and four downward movements over the past 30 days.The estimated figure indicates a 41.11% year-over-year bottom-line decline. The Zacks Consensus Estimate for revenues indicates a deterioration of 14.42% from the year-ago period’s level.

Factors to Consider

LBRT's revenues are likely to have been hurt in the quarter to be reported. Our model predicts first-quarter revenues to be down to $1.08 billion from the year-ago quarter’s level of $1.26 billion. This can be attributed to a weak global macroeconomic environment and growing conflicts in the Middle East.

On a positive note, the reduction in LBRT's costs is likely to have boosted its bottom line. The company’s operating expenses are projected to have reached $950.4 million in the first quarter, down 8.35% from the year-ago period’s level. Its cost of services is expected to have decreased from $888.4 million to $780 million during the same time frame.

What Does Our Model Say?

The proven Zacks model does not conclusively show an earnings beat for Liberty Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.89%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LBRT currently carries a Zacks Rank #3.

Stocks to Consider

Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Marathon Oil Corporation (MRO) presently has an Earnings ESP of +0.45% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marathon Oil is scheduled to release first-quarter earnings on May 1. The Zacks Consensus Estimate for MRO’s earnings is pegged at 56 cents per share, implying a 16.4% decline from the prior-year reported figure.

Halliburton Company (HAL) currently has an Earnings ESP of +0.81% and a Zacks Rank #3.

Halliburton is scheduled to release first-quarter earnings on Apr 23. The Zacks Consensus Estimate for HAL’s earnings is pegged at 74 cents per share, indicating a 2.8% increase from the prior-year reported figure.

PBF Energy (PBF) currently has an Earnings ESP of +14.72% and a Zacks Rank #2.

PBF Energy is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for PBF’s earnings is pegged at 46 cents per share, implying an 83.3% decline from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Halliburton Company (HAL) : Free Stock Analysis Report

Marathon Oil Corporation (MRO) : Free Stock Analysis Report

PBF Energy Inc. (PBF) : Free Stock Analysis Report

Liberty Energy Inc. (LBRT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research