What's in Store for Newpark Resources in Q2 Earnings?

Newpark Resources, Inc. NR is set to report second-quarter 2024 earnings on Aug 5, after the closing bell.

Let us delve into the factors that are anticipated to have affected this oilfield service player's quarterly performance. However, before that, it would be worth taking a look at NR's first-quarter results.

Highlights of Q1 Earnings & Surprise History

The company's adjusted earnings per share of 10 cents beat the Zacks Consensus Estimate of 5 cents in the last reported quarter.

Newpark Resources' earnings beat the Zacks Consensus Estimate once and missed the same once in the trailing two quarters, the average surprise being 28.6%. This is depicted in the graph below:

Estimate Trend

The Zacks Consensus Estimate for the company's second-quarter earnings per share of 8 cents has witnessed no downward and upward movement over the past 30 days. The estimate suggests no change from the prior-year reported number.

The Zacks Consensus Estimate for second-quarter revenues of $171 million indicates a 6.7% decline from the year-ago reported figure.

Factors to Consider

According to the U.S. Energy Information Administration, the average spot prices for West Texas Intermediate crude at Cushing, OK, were $85.35 per barrel in April, $80.02 per barrel in May, and $79.77 per barrel in June. This indicates a highly favorable pricing environment for exploration and production activities in the second quarter. However, drilling activities declined both domestically and internationally in the second quarter.

The decrease in drilling activities suggests that explorers and producers reduced their spending on upstream activities. This lower spending probably affected the demand for services provided by the oilfield service provider, NR.

Additionally, the rise in NR's costs is likely to have negatively impacted the company's second-quarter bottom line. In the first quarter earnings report, capital expenditure nearly doubled year over year, and this trend of increasing costs likely continued in the second quarter, affecting the overall performance.

Earnings Whispers

Our proven model does not indicate an earnings beat for Newpark Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: Newpark Resources has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at earnings of 8 cents.

Zacks Rank: Newpark Resources currently carries a Zacks Rank #3.

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Sunoco LP SUN has an Earnings ESP of +1.96% and currently flaunts a Zacks Rank #1.

Sunoco is scheduled to release second-quarter earnings on Aug 7. The Zacks Consensus Estimate for earnings is pegged at $1.79 per share, suggesting a 129.5% increase from the prior-year reported figure.

MPLX LP MPLX has an Earnings ESP of +0.34% and a Zacks Rank #3 at present.

The firm is scheduled to release second-quarter earnings results on Aug 6. The Zacks Consensus Estimate for earnings is pegged at 98 cents per share, indicating a 7.7% rise from the prior-year reported figure.

The Williams Companies WMB currently has an Earnings ESP of +2.56% and a Zacks Rank #3.

The firm is scheduled to release second-quarter earnings results on Aug 5. The Zacks Consensus Estimate for WMB's earnings is pegged at 39 cents per share, implying a decline from the prior-year reported figure.

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