Shares of National Energy Services Reunited Corp. (NESR) soared 7.21% in pre-market trading on Thursday, following the release of the company's third-quarter financial results that exceeded analysts' expectations.
NESR reported Q3 earnings per share (EPS) of $0.18, surpassing the FactSet estimate of $0.14. The company's revenue for the quarter came in at $295.3 million, beating the consensus estimate of $292.5 million. Despite facing challenges, including reduced activity due to contract transitions in Saudi Arabia, NESR managed to post a net income of $17.7 million, representing a 16.7% increase from the previous quarter.
The strong performance can be attributed to several factors. The company's adjusted EBITDA for the quarter stood at $64 million, demonstrating resilience in a challenging market. Additionally, NESR reported a net release of uncertain tax positions and unrecognized tax benefits in two geographies, which contributed to the improved bottom line. While the revenue decreased by 9.8% sequentially and 12.2% year-over-year, the company's ability to exceed expectations and show sequential growth in net income appears to have resonated positively with investors, driving the pre-market stock surge.
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