Patterson-UTI Energy to Report Q3 Earnings: What's in Store for the Stock?

Core Viewpoint - Patterson-UTI Energy, Inc. (PTEN) is expected to report third-quarter earnings on October 23, with earnings estimated at 1 cent per share and revenues at $1.29 billion, reflecting a significant year-over-year revenue increase despite a projected decline in earnings [1][2]. Group 1: Previous Quarter Performance - In the last reported quarter, PTEN's earnings were 5 cents per share, missing the consensus estimate by 4 cents, primarily due to poor performance in the Drilling Services segment [2]. - Revenues for the last quarter were $1.3 billion, which also fell short of the Zacks Consensus Estimate by 4.8% [2]. - PTEN has had mixed results in the past four quarters, beating estimates twice and missing twice, with an average negative surprise of 11.65% [2]. Group 2: Factors Influencing Current Quarter - PTEN's operating costs are projected to reach $1,271.7 million in the third quarter, a 27% increase from the previous year, impacting profitability [3]. - Direct operating costs are expected to rise from $691.5 million to $932.9 million, while selling, general, and administrative expenses are anticipated to increase from $45.1 million to $62.8 million [3]. - Depreciation, depletion, amortization, and impairment costs are projected to climb to $256.3 million, representing a 29.7% increase from the year-ago period [3]. Group 3: Revenue Expectations - Revenues for the upcoming quarter are expected to increase to $1,288.6 million from $1,011.5 million in the same quarter last year, driven by strong performance in the Completion Services and Drilling Products segments [4]. - Revenues from the Completion Services segment are projected to rise from $459.6 million to $814.0 million, while the Drilling Products segment is expected to grow from $46.57 million to $88 million [4]. Group 4: Earnings Prediction Model - The Zacks model does not predict an earnings beat for PTEN this quarter, as the Earnings ESP is -6.67% and the company holds a Zacks Rank of 4 (Sell) [5][6].