What to expect from Expro's (XPRO) Q3 earnings

What happened

Expro, an oilfield services provider, is scheduled to announce third-quarter earnings Tuesday before the market opens. Analysts expect revenue to rise 7.7% year over year, while estimates were generally unchanged over the past 30 days. Last quarter, revenue fell 7% to $393.2 million, although it beat forecasts.

Confirmed

Global impact / market context

The expected revenue growth would mark a reversal from the 2.7% decline in the same quarter last year, potentially indicating stronger demand for Expro’s services. But last quarter’s misses on earnings per share, or profit per share, and EBITDA, a measure of operating profit, show that revenue alone may not reveal cost or profitability trends.

Analyst inference

Reported results from two oilfield-services peers offer mixed comparisons: ProPetro’s revenue grew 20.9% and beat expectations, while NOV’s rose 2.3% and also topped forecasts. Their shares moved in opposite directions after reporting, showing that revenue growth and beating estimates did not lead to the same share-price response.

Confirmed

What to watch

1. Check whether Expro’s reported revenue matches the expected 7.7% year-over-year increase; the result would show whether the anticipated recovery is appearing in sales. Analyst inference
2. Look for earnings per share and EBITDA results, as last quarter Expro missed estimates for both; these figures can show whether costs are limiting profit. Analyst inference
3. Compare Expro’s revenue and earnings with analyst expectations and recent estimates, which were generally reconfirmed over the past 30 days. Analyst inference

Evidence

• stockstory.org