Overview
KLX Energy Services Q3 revenue grows 5%, beating analyst expectations
Adjusted EBITDA for Q3 rises 14%, beating analyst estimates
Outlook
Company expects mid-single-digit revenue decline in Q4 due to seasonality
KLX anticipates stable Adjusted EBITDA margins in Q4
Result Drivers
STRATEGIC ASSET ALLOCATION - Co attributes revenue growth to strategic asset allocation and improved utilization in key regions
MID-CON/NORTHEAST CONTRIBUTION - Completion-oriented product lines in Mid-Con/Northeast region contributed significantly to revenue growth
MARKET HEADWINDS - Co overcame market headwinds including commodity price volatility and weaker OFS demand
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $166.70 mln | $164.60 mln (1 Analyst) |
Q3 Adjusted Net Income | Slight Miss* | -$14 mln | -$13.90 mln (1 Analyst) |
Q3 Net Income | -$14.30 mln | ||
Q3 Adjusted EBITDA | Beat | $21.10 mln | $19.40 mln (1 Analyst) |
Q3 Adjusted EBITDA Margin | 13.00% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
Wall Street's median 12-month price target for KLX Energy Services Holdings Inc is $4.00, about 56.3% above its November 4 closing price of $1.75
Press Release: ID:nPncd2sXqa
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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.)