KLX Energy Services (KLXE) Reports Q3 Loss, Tops Revenue Estimates

Core Viewpoint - KLX Energy Services reported a quarterly loss of $0.40 per share, which was better than the Zacks Consensus Estimate of a loss of$0.48, representing an earnings surprise of 16.67% [1]. Financial Performance - The company posted revenues of $188.9 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.02$220.6 million in the same quarter last year [2]. - Over the last four quarters, KLX Energy Services has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2]. Stock Performance - KLX Energy Services shares have declined approximately 60% since the beginning of the year, contrasting with the S&P 500's gain of 21.9% [3]. - The current consensus EPS estimate for the upcoming quarter is -$0.75 on revenues of$174.25 million, and for the current fiscal year, it is -$2.98 on revenues of$710.75 million [7]. Industry Outlook - The Oil and Gas - Field Services industry, to which KLX Energy Services belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating a challenging environment [8]. - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact KLX Energy Services' stock performance [5]. Future Expectations - The estimate revisions trend for KLX Energy Services is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expectations of underperformance in the near future [6]. - The upcoming earnings call will be crucial for assessing the sustainability of the stock's price movement based on management's commentary [3].