NINE ENERGY SERVICE Reports Q2 FY2023 Earnings Results on June 30, 2023
August 8, 2023
☀️Earnings Overview
NINE ENERGY SERVICE ($NYSE:NINE) reported total revenue of USD 161.4 million for the second quarter of FY2023, an increase of 13.4% from the same quarter in FY2022. Net income for the quarter was USD -2.5 million, compared to a net loss of USD -1.0 million in the prior year. This report was released on June 30, 2023.
Market Price
On June 30, 2023, NINE ENERGY SERVICE reported their second quarter FY 2023 Earnings Results. On the day, NINE ENERGY SERVICE stock opened at $4.5 and ultimately closed at the same price. This was a 6.1% drop from the previous day’s closing price of 4.8. The report revealed that the revenue from the quarter was lower than expected due to the continued pressure of the pandemic and the current difficult market conditions.
Additionally, the company increased its expenses due to restructuring and new investments in technology and services to better meet customer demand. Despite these challenges, NINE ENERGY SERVICE is still focused on its long-term goals by continuing to build relationships with customers, invest in new technology, and focus on cost savings. The company also stated that the outlook for the remainder of FY2023 remains strong and they are confident that they will be able to grow their revenue and achieve their goals. Overall, NINE ENERGY SERVICE is continuing to make moves to ensure long-term success despite current market conditions. With Q2 earnings results in, investors will wait to see how the company responds to current market conditions in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NINE. More…
| Total Revenues | Net Income | Net Margin |
| 658.94 | 13.62 | 1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NINE. More…
| Operations | Investing | Financing |
| 54.66 | -34.89 | -0.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NINE. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 438.48 | 451.89 | -0.38 |
Key Ratios Snapshot
Some of the financial key ratios for NINE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.3% | 51.7% | 8.6% |
| FCF Margin | ROE | ROA |
| 2.7% | -285.3% | 8.1% |
Analysis
GoodWhale has conducted an analysis of the fundamentals of NINE ENERGY SERVICE, and our findings are summarized in the Star Chart. We do not consider this company to be very strong overall, as it has a health score of 4/10 with regard to its cashflows and debt. This indicates that while NINE ENERGY SERVICE is likely to be able to pay off its debt and fund future operations, it is not in a particularly strong financial position. NINE ENERGY SERVICE is classified as a ‘cheetah’ company; this means that it has achieved high growth in either its revenue or earnings, but is considered less stable due to its lower profitability. Investors looking for a high-growth company that is not necessarily a safe bet may be interested in NINE ENERGY SERVICE. In terms of specific areas of strength, we have found that NINE ENERGY SERVICE is strong in growth and medium in profitability and asset strength. Its dividend strength, however, is weak. As such, investors interested in NINE ENERGY SERVICE should be aware that it may not provide a strong dividend return. More…
Peers
Its competitors are Essential Energy Services Ltd, KLX Energy Services Holdings Inc, Western Energy Services Corp.
– Essential Energy Services Ltd ($TSX:ESN)
Essential Energy Services Ltd. is a Canada-based company, which provides various services to the energy sector in both the Western and Eastern Canadian Sedimentary Basins. The Company’s segments include Drilling Services, Completion and Production Services, and Rental Equipment. The Drilling Services segment provides drilling rigs and related services to customers in the oil and gas industry. The Completion and Production Services segment provides completion tools and services, including coiled tubing, fluid management and other well intervention services. The Rental Equipment segment rents equipment, including surface rental equipment and downhole rental tools. It operates in approximately 140 locations in Canada.
– KLX Energy Services Holdings Inc ($NASDAQ:KLXE)
KLX Energy Services Holdings Inc is a provider of completion, intervention and well services to the oil and gas industry. The company has a market cap of 188.35M as of 2022 and a return on equity of 415.16%. KLX Energy Services Holdings Inc operates in the US, Canada and Latin America. The company’s services include drilling, completion, intervention and well services.
– Western Energy Services Corp ($TSX:WRG)
Western Energy Services Corp is a Canadian oilfield services company. It has a market capitalization of $129.61 million and a return on equity of 9.23%. The company provides a range of services to oil and gas companies, including drilling, completion, and production services.
Summary
NINE ENERGY SERVICE reported its earnings results for the second quarter of FY2023, showing a 13.4% increase in total revenue from the same period in the previous year. Net income was USD -2.5 million, compared to a net loss of USD -1.0 million the year prior. Despite this improvement, the stock price moved down on the same day, suggesting that investors may have been expecting even better results.
As such, it appears that NINE ENERGY SERVICE still has room to grow before it can be considered a strong investment option. Investors should take a closer look at the company’s future prospects and consider whether its current performance justifies an investment.
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