Patterson-UTI Energy to Post Q1 Earnings: Here's What to Expect

Core Viewpoint - Patterson-UTI Energy, Inc. (PTEN) is expected to report a first-quarter earnings loss of 4 cents per share and revenues of $1.19 billion, reflecting a challenging market environment and operational performance issues [1][8]. Group 1: Recent Performance - In the last reported quarter, PTEN's earnings missed the consensus estimate by 2 cents, reporting an adjusted net loss of 12 cents per share, which was wider than the expected 10-cent loss [2]. - Revenues for the last quarter were$1.2 billion, missing the Zacks Consensus Estimate by 4.2% [2]. - PTEN has beaten the Zacks Consensus Estimate in one of the last four quarters, with an average negative surprise of 37.27% [3]. Group 2: Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings indicates a 126.67% year-over-year decline, while revenues are expected to decrease by 21.25% from the previous year [3]. - The estimated operating costs for the first quarter are projected to be $1,207.5 million, down 15.2$1,077.1 million to $897.6 million, and depreciation, depletion, amortization, and impairment costs are anticipated to drop from$275 million to $234.7 million [6]. - The company's strategy to integrate its Drilling and Completions businesses is expected to create a sustainable competitive advantage, with advancements in natural gas-powered completion equipment enhancing its market position [7]. Group 4: Revenue Challenges - Revenues are anticipated to decline due to poor performance across several segments, including Completion Services and Drilling Services [8][9]. - Despite expected revenue declines, PTEN's cost management efforts are crucial in minimizing the financial impact in the upcoming quarter [9]. Group 5: Earnings Prediction - The model predicts an earnings beat for PTEN, supported by a positive Earnings ESP of +25.00% and a Zacks Rank of 3 [11].