ProPetro (PUMP) reports earnings tomorrow: what to expect

What happened

ProPetro will report earnings Wednesday morning. Last quarter, revenue was $305.8 million, down 6.2% year on year, and the company missed analysts' EBITDA which means earnings before interest, taxes, depreciation and amortization, and earnings-per-share estimates. This quarter, the market expects revenue to grow 6% year on year.

Confirmed

Global impact / market context

Investors will compare results with the 6% revenue growth expectation. A miss could renew concerns after last quarter's weak results, while a beat could suggest the business is stabilizing. Rivals SLB and Halliburton already beat estimates, giving a benchmark for oilfield services demand.

Analyst inference

Peers SLB and Halliburton posted small year-on-year revenue growth and beat expectations, which suggests oilfield services demand is holding up. ProPetro has missed revenue estimates several times over two years, so its own results will show whether it keeps losing ground to larger competitors.

Analyst inference

What to watch

1. Watch whether ProPetro's revenue reaches the 6% year-on-year growth the market expects this quarter, a reversal from the 18.6% decrease recorded in the same quarter last year. Confirmed
2. Watch whether analysts change their estimates after the report, since they reconfirmed estimates over the last 30 days and expect the business to stay the course. Proposed
3. Watch profit per sale and EBITDA, which means earnings before interest, taxes, depreciation and amortization, after last quarter's significant misses, to see if costs are pressuring results. Analyst inference

Evidence

• stockstory.org