Liberty Oilfield Services Tanks 6.5% on Wider-Than-Expected Q4 Loss

Shares of Liberty Oilfield Services (NYSE: LBRT) were down 6.5% during extended trading hours on February 8, after the oilfield service provider company reported mixed Q4 results, beating revenues estimates but falling way short of analysts’ earnings expectations.

Q4 Numbers

Disappointingly, the company reported an adjusted loss of $0.31 per share, much worse than the street’s estimated loss of $0.17 per share. Comparatively, the company reported a loss of $0.22 per share for the prior-year period.

However, revenues jumped 5% year-over-year to $684 million and exceeded consensus estimates of $674.32 million.

FY2022 Outlook

For Q1, the company expects to achieve high single-digit sequential revenue growth and significant improvement in margins as acquisition-related integration costs start to fade away.

CEO Comments

Looking ahead, Liberty Oilfield Services CEO, Chris Wright, commented, “We are benefiting from increased pricing in 2022, driven by a pass-through of inflationary costs and higher net service pricing. We expect continued modest rises in frac pricing in subsequent quarters. We also expect margin growth as our new strategic efforts begin to pay dividends in lowering our cost of operations and increasing efficiency,”

Speaking on the acquisitions and integration of PropX, he added, “We are excited for the opportunity ahead and are investing to build truly differential competitive advantages in frac fleet technology, digital systems, and logistics optimization bolstered by the PropX acquisition. We expect that our investments today will lead to strong returns in the coming years.”

Analysts Recommendation

Overall, the stock has a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average Liberty Oilfield Services price target of $15 implies 42.45% upside potential from current levels. Shares of LBRT have jumped 4.5% over the past year.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on LBRT stock, compared to a sector average of 71%.

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