Nuverra Environmental Solutions Earnings: Here’s Why the Stock is Down Now

Nuverra Environmental Solutions (NYSE:NES) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.35%.

Nuverra Environmental Solutions Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.05 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Rose 82.33% to $165.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nuverra Environmental Solutions reported adjusted EPS loss of $0.05 per share. By that measure, the company missed the mean analyst estimate of $-0.03. It missed the average revenue estimate of $168.64 million.

Quoting Management: Mark D. Johnsrud, Chief Executive Officer of Nuverra Environmental Solutions, stated, “We made progress in the second quarter, as evidenced by the increase in revenues and improvement in adjusted EBITDA on a sequential basis. However, the financial results fell short of our expectations due to slower ramp up by E&P operators across all shale areas; extraordinarily cold and wet weather conditions in the Bakken Shale area; execution issues in the Eagle Ford Shale; hiring challenges in the Marcellus/Utica Shale areas; and underperformance in our Industrial Solutions business.”

Key Stats (on next page)…

Revenue increased 3.79% from $159.46 million in the previous quarter. EPS were the same at $-0.05 in the quarter as EPS of $-0.05 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.04 to a profit $0.01. For the current year, the average estimate has moved down from a profit of $0.04 to a loss of $0.04 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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