Why Is Patterson-UTI (PTEN) Down 14.7% Since Last Earnings Report?

Core Viewpoint - Patterson-UTI Energy reported a wider-than-expected loss in Q4 2024, with significant declines in revenue and operating income across its segments, raising concerns about its future performance [2][3][6][7]. Financial Performance - The adjusted net loss for Q4 2024 was 12 cents per share, worse than the expected 10-cent loss, and a decline from a profit of 19 cents in the same quarter last year [2]. - Total revenues were $1.2 billion, missing the Zacks Consensus Estimate by 4.2% and down 26.6% year-over-year [3]. - Adjusted EBITDA for the quarter was $225 million, excluding certain charges [3]. Segmental Performances - Drilling Services: Revenues totaled $408 million, down 12% from $463.6 million a year ago, but exceeded estimates of $364.4 million. Operating income was $73 million, down from $92.7 million [6]. - Completion Services: Revenues dropped 35.8% to $651 million from $1,014.4 million year-over-year, missing estimates of $736.5 million. The segment reported an operating loss of $50.2 million compared to a profit of $70.3 million in Q4 2023 [7]. - Drilling Products: Revenues were $86.5 million, a decline of 1.8% from $88.1 million a year ago, missing estimates of $89.4 million. Operating profit was $0.3 million, down 23% year-over-year [8]. - Other Services: Revenues were $16.4 million, down 10.4% from $18.3 million year-over-year, but exceeded estimates of $15.1 million. Operating income was $2.1 million, up from $1 million in Q4 2023 [9]. Capital Expenditure & Financial Position - Capital expenditures in the reported quarter were $140.4 million, down from $205.3 million in the prior year [11]. - As of December 31, 2024, the company had cash and cash equivalents of $241 million and long-term debt of $1,219 million, with a debt-to-capitalization ratio of 26% [11]. - The company generated $1.2 billion in cash from operations and $525 million in free cash flow [11]. Shareholder Returns - The board declared a quarterly dividend of 8 cents per share, unchanged from the previous quarter, to be paid on March 20 [4]. - In Q4, the company returned $52 million to shareholders, with $20 million used for share repurchases [5]. Outlook - There has been an upward trend in estimates revisions, with a consensus shift of 34.54% [12]. - Patterson-UTI holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14].