Patterson-UTI Energy Earnings: Here’s Why Investors are Not Excited Now

Patterson-UTI Energy Inc. (NASDAQ:PTEN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.45%.

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Patterson-UTI Energy Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 39.68% to $0.38 in the quarter versus EPS of $0.63 in the year-earlier quarter.

Revenue: Decreased 10.58% to $667 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Patterson-UTI Energy Inc. reported adjusted EPS income of $0.38 per share. By that measure, the company beat the mean analyst estimate of $0.36. It beat the average revenue estimate of $657.56 million.

Quoting Management: Andy Hendricks, Patterson-UTI’s Chief Executive Officer, stated, “Our U.S. rig activity continues to be supported by our growing fleet of high-specification APEX® rigs. The increased proportion of APEX® rigs working during the first quarter, together with fewer rigs on standby, positively impacted our average revenue per day. Additionally, we received an early termination payment for one rig, which positively impacted average revenue per day by $170. In total, average revenue per day increased $940 sequentially to $23,410.”

Key Stats (on next page)…

Revenue increased 2.18% from $652.75 million in the previous quarter. EPS decreased 5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.24 to a profit $0.35. For the current year, the average estimate has moved up from a profit of $1.10 to a profit of $1.48 over the last ninety days.

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