Oilfield services company Patterson-UTI (NASDAQ: PTEN) will be reporting results this Wednesday after the bell. Here’s what to look for.
Patterson-UTI beat analysts’ revenue expectations last quarter, reporting revenues of $1.23 billion, flat year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
Is Patterson-UTI a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Patterson-UTI’s revenue to grow 11.1% year on year, a reversal from the 13.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Patterson-UTI rarely misses Wall Street’s revenue estimates.
Looking at Patterson-UTI’s peers in the oilfield services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. SLB delivered year-on-year revenue growth of 5.8%, beating analysts’ expectations by 1.7%, and Halliburton reported revenues up 1.8%, topping estimates by 2.1%. SLB traded up 6.4% following the results while Halliburton was also up 3.1%.
Read our full analysis of SLB’s results here and Halliburton’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 5.7% on average over the last month. Patterson-UTI is up 13.1% during the same time and is heading into earnings with an average analyst price target of $13.93 (compared to the current share price of $12.27).
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