Expro beats Q3 revenue expectations
Overview
Energy services firm's Q3 revenue beat analyst expectations
Company posted Q3 net loss of $5 mln as expenses increased
Company authorized new $100 mln share repurchase plan
Outlook
Company raises 2026 adjusted free cash flow guidance to $140-$150 mln
Company expects sequential improvement in Q4 revenue and adjusted EBITDA
Company lowers Q4 adjusted EBITDA expectations by about $20 mln due to project deferrals
Result Drivers
ENHANCED DRILLING ACQUISITION - Co said Q3 revenue growth in North and Latin America and Europe/Sub-Saharan Africa was mainly driven by the Enhanced Drilling acquisition and higher well construction and flow management activity
COST DISCIPLINE AND SEGMENT REALIGNMENT - Co attributed cash flow to increased capital discipline, improved collections, and segment realignment including creation of AMENA region
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $439.94 mln | $433.83 mln (4 Analysts) |
Q3 Net Loss | $5.20 mln | ||
Q3 Adjusted EBITDA | $91 mln | ||
Q3 Operating income | $4.88 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy."
Wall Street's median 12-month price target for Expro Ltd is $17.50, about 10.3% above its November 2 closing price of $15.87
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)