What to Expect from Select Water Solutions's Earnings

Select Water Solutions WTTR is gearing up to announce its quarterly earnings on Tuesday, 2024-11-05. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Select Water Solutions will report an earnings per share (EPS) of $0.14.

The announcement from Select Water Solutions is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

In the previous earnings release, the company beat EPS by $0.02, leading to a 0.85% increase in the share price the following trading session.

Here's a look at Select Water Solutions's past performance and the resulting price change:

Stock Performance

Shares of Select Water Solutions were trading at $10.31 as of November 01. Over the last 52-week period, shares are up 45.98%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Select Water Solutions

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Select Water Solutions.

Select Water Solutions has received a total of 1 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $14.5, the consensus suggests a potential 40.64% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of ProFrac Holding, Bristow Group and RPC, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for ProFrac Holding, with an average 1-year price target of $6.83, suggesting a potential 33.75% downside.
• As per analysts' assessments, Bristow Group is favoring an Buy trajectory, with an average 1-year price target of $50.0, suggesting a potential 384.97% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for RPC, with an average 1-year price target of $6.5, implying a potential 36.95% downside.

Insights: Peer Analysis

The peer analysis summary presents essential metrics for ProFrac Holding, Bristow Group and RPC, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Select Water Solutions is positioned at the bottom for Revenue Growth and Gross Profit, with negative growth rates and lower profit margins compared to peers. However, it ranks at the top for Return on Equity, indicating higher profitability relative to equity. Overall, Select Water Solutions shows mixed performance compared to its peers in the analysis.

Get to Know Select Water Solutions Better

Select Water Solutions Inc provides sustainable water and chemical solutions to the energy industry. These solutions are supported by the company's critical water infrastructure assets, chemical manufacturing, and water treatment and recycling capabilities. Its reportable segments are Water Services, Water Infrastructure, and Chemical Technologies. It generates the majority of its revenue from Water Services.

Key Indicators: Select Water Solutions's Financial Health

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Select Water Solutions's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -9.76% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Select Water Solutions's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.52%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Select Water Solutions's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.66%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.98%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.19.

To track all earnings releases for Select Water Solutions visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.