Earnings Preview: Patterson-UTI (PTEN) Q2 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Patterson-UTI due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Patterson-UTI is expected to report a quarterly loss of $0.04 per share, reflecting a year-over-year change of -180% [3]. - Revenue is projected to be $1.21 billion, down 10% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 32.87% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Patterson-UTI is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.23% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Patterson-UTI was expected to post a loss of $0.04 per share but delivered break-even earnings, resulting in a surprise of +100.00% [13]. - Over the last four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - Patterson-UTI does not appear to be a compelling earnings-beat candidate, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [17].