What to Expect from Liberty Energy's Earnings

Liberty Energy (NYSE:LBRT) will release its quarterly earnings report on Wednesday, 2024-10-16. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Liberty Energy to report an earnings per share (EPS) of $0.61.

Anticipation surrounds Liberty Energy's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company missed EPS by $0.00, leading to a 1.58% increase in the share price the following trading session.

Here's a look at Liberty Energy's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	0.61	0.56	0.57	0.75
EPS Actual	0.61	0.48	0.54	0.85
Price Change %	2.0%	3.0%	6.0%	7.000000000000001%

Liberty Energy Share Price Analysis

Shares of Liberty Energy were trading at $20.41 as of October 14. Over the last 52-week period, shares are up 1.89%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Liberty Energy

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Liberty Energy.

The consensus rating for Liberty Energy is Buy, derived from 4 analyst ratings. An average one-year price target of $24.25 implies a potential 18.81% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Tidewater, Archrock and USA Compression Partners, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• For Tidewater, analysts project an Buy trajectory, with an average 1-year price target of $138.0, indicating a potential 576.14% upside.
• Archrock is maintaining an Outperform status according to analysts, with an average 1-year price target of $23.83, indicating a potential 16.76% upside.
• USA Compression Partners received a Neutral consensus from analysts, with an average 1-year price target of $24.33, implying a potential 19.21% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Tidewater, Archrock and USA Compression Partners, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Liberty Energy	Buy	-2.94%	$200.78M	5.67%
Tidewater	Buy	57.81%	$102.46M	4.71%
Archrock	Outperform	9.28%	$112.24M	3.83%
USA Compression Partners	Neutral	13.72%	$91.84M	21.53%

Key Takeaway:

Liberty Energy ranks at the bottom for Revenue Growth, with a negative growth rate. It is in the middle for Gross Profit, showing moderate performance. The company is at the bottom for Return on Equity, indicating lower profitability compared to peers.

Discovering Liberty Energy: A Closer Look

Liberty Energy is an oilfield services company that provides hydraulic fracturing services—mainly pressure pumping—in major basins throughout North America. Its 2020 acquisition of Schlumberger's OneStim business segment made Liberty one of the largest pressure pumpers in North America. It also added wireline operations, two Permian frac sand mines, and an expanded technological portfolio.

Liberty Energy's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Liberty Energy faced challenges, resulting in a decline of approximately -2.94% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Liberty Energy's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.35% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Liberty Energy's ROE stands out, surpassing industry averages. With an impressive ROE of 5.67%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Liberty Energy's ROA excels beyond industry benchmarks, reaching 3.42%. This signifies efficient management of assets and strong financial health.

Debt Management: Liberty Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.24.

To track all earnings releases for Liberty Energy visit their earnings calendar on our site.

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