Key Takeaways Palo Alto Networks' NGS ARR hit $5.09B in Q3 of fiscal 2025, growing 34% year over year. XSIAM bookings neared $1B as ARR from the AI platform soared more than 200% year over year. PANW now has 130 customers with $5M in NGS ARR, and 44 customers surpassing $10M .Palo Alto Networks (PANW) surpassed a key milestone during the third quarter of fiscal 2025, wherein the annual recurring revenues (ARR) for its next-generation security (NGS) solutions hit the $5 billion mark. In the third quarter, ...

Natural Gas Services (NGS) closed the last trading session at $24.51, gaining 27.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $36.25 indicates a 47.9% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $5.97. While the lowest estimate of $32 indicates a 30.6% increase from the current price level, the most optimistic analys ...

A fresh wave of market uncertainty has been triggered by the U.S. trade court's ruling that President Donald Trump's global tariffs are illegal. Additionally, the Federal Reserve’s wait-and-see stance means the future direction of interest rates is uncertain.In this context, creating a curated portfolio of low-beta stocks is a prudent strategy. This provides a safeguard against the uncertain market, equipping investors to navigate volatility with greater resilience and foresight.Hence, stocks like Natural G ...

Rising oil production that may surpass the yearly demand growth of the commodity will probably drag down prices. This will hurt demand for drilling and production equipment as explorers and producers will be reluctant to produce more of the commodity, creating a challenging outlook for the Zacks Oil and Gas- Mechanical and Equipment industry.Companies striving to navigate these industry challenges include Natural Gas Services Group, Inc. (NGS) , Solaris Energy Infrastructure, Inc. (SEI) and Oil States Inter ...

Core Insights - The article discusses the upcoming Q2 earnings results of Palo Alto Networks and highlights key factors for investors to monitor [1]. Group 1 - The author has a background in finance, holding a CFA Charter and a PhD in Finance, and is involved in quantitative research across various financial domains [1]. - The author operates a YouTube and Podcast channel titled "The Stock Doctor," where insights on US and Indian markets are shared weekly [1]. Group 2 - There is a potential for the author to initiate a long position in Palo Alto Networks within the next 72 hours, indicating a positive outlook on the stock [2].

Shares of Natural Gas Services (NGS) have gained 38% over the past four weeks to close the last trading session at $24.95, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $36.25 indicates a potential upside of 45.3%.The mean estimate comprises four short-term price targets with a standard deviation of $5.97. While the lowest estimate of $32 indicates a 28.3% increase from the cu ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 20th:Wheaton Precious Metals Corp. (WPM) : This company that sells precious metals in North America, Europe, Africa, and South America has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.9% over the last 60 days.Wheaton’s shares gained 18% over the last three months compared with the S&P 500’s decline of 1%. The company possesses a Momentum Score ...

Revenue Performance - Total revenue for Q1 2025 increased by 12% to $41.4 million compared to $36.9 million in Q1 2024, driven by higher rental revenues [10] - Rental revenue reached $38.9 million in Q1 2025, representing a 15% year-over-year increase and a 2% sequential increase [6] - Total revenue for Q1 2025 was $41,383,000, an increase of 12.0% from $36,907,000 in Q1 2024 [36] Profitability Metrics - Adjusted EBITDA for Q1 2025 was $19.3 million, a 14% increase year-over-year and a 7% increase sequentially [15] - Net income for Q1 2025 was $4.9 million, or $0.38 per diluted share, compared to $5.1 million, or $0.41 per diluted share, in Q1 2024 [13] - Operating income for Q1 2025 was $9,507,000, slightly up from $9,319,000 in Q1 2024, reflecting a 2.0% increase [36] - Net income for Q1 2025 decreased to $4,854,000, down 4.8% from $5,098,000 in Q1 2024 [36] - Earnings per share (diluted) for Q1 2025 was $0.38, down from $0.41 in Q1 2024 [36] Cash Flow and Expenses - Cash flows from operating activities for Q1 2025 were $21.3 million, significantly higher than $5.6 million in the same period of 2024 [14] - Cash provided by operating activities significantly increased to $21,267,000 in Q1 2025, compared to $5,609,000 in Q1 2024 [38] - Total cost of revenues for Q1 2025 was $17,127,000, up 8.4% from $15,794,000 in Q1 2024 [36] - Selling, general and administrative expenses rose to $5,378,000 in Q1 2025, an increase of 14.4% from $4,702,000 in Q1 2024 [36] - The company incurred interest expense of $3,170,000 in Q1 2025, compared to $2,935,000 in Q1 2024, reflecting an increase of 8.0% [36] Guidance and Future Outlook - The company raised its full-year 2025 Adjusted EBITDA guidance to a range of $74 million to $79 million, reflecting strong business momentum [4] - The company anticipates growth capital expenditures of $95 million to $120 million for 2025, primarily for new units under contract [5] - The company is focused on capitalizing on opportunities in the compression industry, with forward-looking statements regarding EBITDA growth and capital expenditures [29] Asset and Liability Management - Total assets increased to $501,691,000 as of March 31, 2025, up from $492,528,000 at the end of 2024 [34] - Current liabilities rose to $22,445,000 as of March 31, 2025, compared to $17,358,000 at the end of 2024, indicating increased short-term obligations [34] - The company reported a retained earnings increase to $156,362,000 as of March 31, 2025, up from $151,508,000 at the end of 2024 [34] Strategic Focus - The company is focused on fleet optimization, asset utilization, and potential mergers and acquisitions to drive growth [9] - The rented horsepower fleet is expected to increase by approximately 90,000 horsepower, an 18% increase compared to year-end 2024 [5] Risks and Challenges - The company acknowledges risks including oil and gas price volatility and competition, which could impact future performance [30] Conference Call Announcement - The company plans to host a conference call on May 13, 2025, to discuss fourth-quarter and year-end financial results, indicating ongoing transparency with investors [26]

Natural Gas Services Group (NGS) Q1 2025 Earnings Call May 13, 2025 08:30 AM ET Company Participants Anna Delgado - Executive & Investor Relations AssistantJustin Jacobs - CEOIan Eckert - CFOTim Opler - Managing Director Conference Call Participants Rob Brown - Founding Partner & Senior Research AnalystJim Rollyson - Director & Equity Research AnalystTate Sullivan - Managing Director & Senior Industrials Analyst Operator Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group Incor ...

Financial Data and Key Metrics Changes - Rental revenue reached a quarterly record of $38.9 million, a 15% increase year-over-year and a 2% sequential increase [6][20] - Adjusted EBITDA for the quarter was $19.3 million, marking a 14% increase compared to the first quarter of the previous year and a 7% sequential increase [7][22] - Net income for the quarter was $4.9 million, or $0.38 per diluted share, compared to $5.1 million, or $0.41 per diluted share in the prior year [21] - Total revenue for Q1 2025 was $41.4 million, a 12% increase from $36.9 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Adjusted rental gross margin was 61.9%, an increase of 80 basis points year-over-year and 150 basis points sequentially [21] - Rented adjusted gross margin reached 61.9%, marking one of the highest levels achieved in the past decade [21] Market Data and Key Metrics Changes - Natural gas prices are currently hovering in the mid-threes after peaking above four, with forecasts showing potential upside due to LNG export growth and new pipeline projects [10] - The company has observed modest CapEx reductions from customers, but these have not materially impacted its business [9] Company Strategy and Development Direction - The company is focusing on three growth and value drivers: asset utilization, fleet expansion, and mergers and acquisitions [11] - There is a strong emphasis on customer diversification, with the largest customer accounting for 46% of revenue, down from 54% in the previous fiscal year [15] - The company is maintaining its growth CapEx guidance of $95 million to $120 million, heavily weighted towards the second half of the year [29] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to perform despite market volatility and has not seen significant changes in the demand environment [35] - The company is cautiously optimistic about the future, with ongoing discussions about growth in 2026 and a strong pipeline of contracted units [5][9] - Management is closely monitoring macroeconomic conditions and their potential impact on the business [28] Other Important Information - The company ended the quarter with $168 million outstanding on its revolving credit facility, with a leverage ratio of 2.18 times [23] - Significant progress has been made in monetizing an $11 million income tax receivable, which is expected to be collected in the near future [12] Q&A Session Summary Question: Current demand environment and volatility - Management indicated that there has not been a significant change in the demand environment, with 2025 contracts essentially locked in and ongoing discussions for 2026 growth [35] Question: Gross margins and unusual factors - Management explained that the increase in gross margins is consistent with the mix of high horsepower units and that some natural volatility is expected [38][40] Question: Plans for monetization of assets - Proceeds from monetization efforts will primarily be used to pay down debt and fund organic growth initiatives [47] Question: Impact of crude oil volatility on smaller compression providers - Management noted that while crude oil prices primarily affect large horsepower, there are modest positive trends for small horsepower driven by natural gas prices [54] Question: Lead times for engines and frames - Lead times remain unchanged, with engines taking approximately six to nine months and compressor frames taking up to twelve months [58]