Patterson-UTI Energy Earnings Preview

Patterson-UTI Energy PTEN is gearing up to announce its quarterly earnings on Wednesday, 2024-10-23. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Patterson-UTI Energy will report an earnings per share (EPS) of $0.04.

Investors in Patterson-UTI Energy are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

The company's EPS missed by $0.06 in the last quarter, leading to a 5.14% increase in the share price on the following day.

Performance of Patterson-UTI Energy Shares

Shares of Patterson-UTI Energy were trading at $7.9 as of October 21. Over the last 52-week period, shares are down 41.3%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Insights on Patterson-UTI Energy

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Patterson-UTI Energy.

With 8 analyst ratings, Patterson-UTI Energy has a consensus rating of Outperform. The average one-year price target is $12.0, indicating a potential 51.9% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of Helmerich & Payne, Valaris and Seadrill, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Helmerich & Payne, with an average 1-year price target of $39.0, suggesting a potential 393.67% upside.
• The consensus outlook from analysts is an Buy trajectory for Valaris, with an average 1-year price target of $75.0, indicating a potential 849.37% upside.
• The consensus outlook from analysts is an Buy trajectory for Seadrill, with an average 1-year price target of $64.0, indicating a potential 710.13% upside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Helmerich & Payne, Valaris and Seadrill are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Patterson-UTI Energy ranks highest in Revenue Growth among its peers. It has the lowest Gross Profit margin. The company's Return on Equity is the second lowest. Overall, Patterson-UTI Energy is positioned in the middle compared to its peers in the analysis.

Delving into Patterson-UTI Energy's Background

Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States. Its 2023 merger with NexTier greatly expanded its pressure pumping operations, as well, and the firm now controls nearly 20% of the North American market for drilling and completions services. It also provides directional drilling services and tool rental services in most US onshore oil and gas basins.

Patterson-UTI Energy's Economic Impact: An Analysis

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Patterson-UTI Energy displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 77.65%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Patterson-UTI Energy's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.82%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Patterson-UTI Energy's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.24%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Patterson-UTI Energy's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.16%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Patterson-UTI Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.29, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Patterson-UTI Energy visit their earnings calendar on our site.

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