Select Water Solutions Inc. (NYSE:WTTR) stock plunged 5.66% in after-hours trading on November 5, 2024, following the company's third-quarter 2024 earnings release. Despite reporting better-than-expected earnings and revenue for Q3, the company guided for lower earnings in the fourth quarter, disappointing investors.

For the third quarter, Select Water Solutions reported GAAP earnings per share of $0.16, beating analyst estimates by $0.03. Revenue for the quarter came in at $371.35 million, surpassing expectations by $20.44 million. The company's Water Infrastructure segment demonstrated significant profitability improvements, with gross margins before depreciation, amortization, and accretion (D&A) increasing by over 5 percentage points to 56.7%, compared to the second quarter of 2024.

However, the company expects Adjusted EBITDA for the fourth quarter to be in the range of $60 million to $62 million, lower than the third quarter's $72.8 million. This anticipated decline is primarily due to a seasonal slowdown in activity in the Water Services segment and planned downtime for certain assets in the Northern Delaware Basin. The downtime is necessary to integrate and expand the company's water infrastructure networks in the region.