Nine Energy Service Inc (NINE) Q3 2024 Earnings Call Highlights: Surpassing Revenue ...

GuruFocus.com11-06

Revenue: $138.2 million, above original guidance of $127 to $137 million. Adjusted EBITDA: $14.3 million, a 47% increase quarter over quarter. Diluted EPS: Negative $0.26. Incremental Adjusted EBITDA ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNine Energy Service Inc (NINE) Q3 2024 Earnings Call Highlights: Surpassing Revenue ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-06 09:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/nine-energy-inc-nine-q3-010102202.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $138.2 million, above original guidance of $127 to $137 million.\nAdjusted EBITDA: $14.3 million, a 47% increase quarter over quarter.\nDiluted EPS: Negative $0.26.\nIncremental Adjusted EBITDA ...</p>\n\n<a href=\"https://finance.yahoo.com/news/nine-energy-inc-nine-q3-010102202.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NINE","symbol_name":"Nine Energy Service Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/nine-energy-inc-nine-q3-010102202.html","article_id":"2481693975","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/_9MkF_mADHVYw6.5MQ7Sow--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/d34f8de062d6a8aac4e1cab1f8f0b0be"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481693975","pubTimestamp":1730854862,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $138.2 million, above original guidance of $127 to $137 million.Adjusted EBITDA: $14.3 million, a 47% increase quarter over quarter.Cementing Revenue: $51.2 million, a 12% increase quarter over quarter.Wireline Revenue: $27.9 million, flat compared to Q2.Completion Tool Revenue: $31.4 million, a 3% decrease.Coil Tubing Revenue: $27.7 million, a 5% increase.Cash and Cash Equivalents: $15.7 million as of September 30, 2024.Borrowings under ABL Credit Facility: $50 million, reduced to $47 million after additional payments.Net Cash Used in Operating Activities: $5.9 million.CapEx Spend for Q3: $3.6 million, total $11.7 million year-to-date.GuruFocus has detected 7 Warning Signs with NINE.Nine Energy Service Inc  reported Q3 2024 revenue of $138.2 million, exceeding the original guidance range of $127 to $137 million.Despite revenue growth, Nine Energy Service Inc  reported a diluted EPS of negative $0.26.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NINE":"Nine Energy Service Inc."},"translate_title":"九能源服务公司(NINE)2024年第三季度收益看涨期权亮点：超过收入...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NINE":1},"content_text":"Revenue: $138.2 million, above original guidance of $127 to $137 million.\nAdjusted EBITDA: $14.3 million, a 47% increase quarter over quarter.\nDiluted EPS: Negative $0.26.\nIncremental Adjusted EBITDA Margins: Approximately 79%.\nCementing Revenue: $51.2 million, a 12% increase quarter over quarter.\nWireline Revenue: $27.9 million, flat compared to Q2.\nCompletion Tool Revenue: $31.4 million, a 3% decrease.\nCoil Tubing Revenue: $27.7 million, a 5% increase.\nCash and Cash Equivalents: $15.7 million as of September 30, 2024.\nTotal Liquidity Position: $43.3 million.\nBorrowings under ABL Credit Facility: $50 million, reduced to $47 million after additional payments.\nInterest Payment: Approximately $19.5 million during Q3.\nGeneral and Administrative Expense: $12.4 million.\nDepreciation and Amortization Expense: $9 million.\nNet Cash Used in Operating Activities: $5.9 million.\nCapEx Spend for Q3: $3.6 million, total $11.7 million year-to-date.\n\n\nWarning! GuruFocus has detected 7 Warning Signs with NINE.\n\nRelease Date: November 01, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nNine Energy Service Inc (NYSE:NINE) reported Q3 2024 revenue of $138.2 million, exceeding the original guidance range of $127 to $137 million.\nAdjusted EBITDA increased by approximately 47% quarter over quarter, with incremental margins of approximately 79%.\nThe cementing business saw a significant market share increase of approximately 23% quarter over quarter, with revenue growing by approximately 12%.\nInternational completion tool revenue increased quarter over quarter, indicating successful commercialization of new products like the pincer hybrid frac plug.\nCost reduction and supply chain initiatives positively impacted profitability, with ongoing efforts to sustain these improvements.\n\n Negative Points \n\nDespite revenue growth, Nine Energy Service Inc (NYSE:NINE) reported a diluted EPS of negative $0.26.\nThe US rig count declined by approximately 3% from Q2, reflecting a challenging market environment.\nLow natural gas prices, averaging just above $2 for the year, led to sustained lower activity levels in key regions like Haynesville and the northeast.\nWireline revenue remained flat quarter over quarter, despite efforts to differentiate in a competitive market.\nQ4 2024 is anticipated to see a moderate slowdown due to budget exhaustion, weather, and holidays, with projected revenue expected to be down compared to Q3.\n\n Q & A Highlights \nQ: What's leading to these market share gains in cementing and other businesses? A: Ann Fox, President and CEO, explained that the company devised a specific strategy targeting certain customers, focusing on key performance indicators and metrics. This deliberate approach led to significant market share gains, particularly in cementing and wireline services. The strategy included cost reduction efforts, such as vendor consolidation and internal efficiencies, which are expected to be sustainable.\nQ: How are international sales tracking compared to last year? A: Ann Fox noted that international sales might be slightly lower this year due to the small numbers involved. However, the company is working on a deliberate strategy to expand internationally, particularly in the Middle East, and expects incremental awards based on recent tool successes.\nQ: What is the EBITDA run rate needed to achieve free cash flow break-even? A: Ann Fox stated that the company aims for a cash flow neutral position at around $15 million in EBITDA per quarter. Despite the current depressed rig count environment, the company believes this target is achievable, especially with anticipated activity increases and ongoing cost-cutting measures.\nQ: Will cost reductions remain if activity picks up? A: Ann Fox confirmed that the cost reductions are expected to be sticky and sustainable, improving the incremental margin on revenue. The company has fundamentally improved its cost structure, which should remain even if activity levels increase.\nQ: What are customers' views on natural gas activity, particularly in Appalachia and Haynesville? A: Ann Fox mentioned that customers are optimistic about medium and long-term natural gas demand. A gas price with a \"three handle\" could spur activity, especially in the Northeast. Haynesville may require a slightly higher price due to its technical complexity. The company continues to focus on creating efficiencies and providing new technologies to support customers.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481693975"}