KLX Energy Services Q2 revenue rises 16% on Wolf Pack acquisition
KLX Energy Services Q2 revenue rises 16% on Wolf Pack acquisition
Overview
US oilfield services provider's Q2 revenue rose 16% sequentially to $167 mln
Adjusted EBITDA for Q2 increased 68% from prior quarter to $19 mln
Company closed Wolf Pack Rentals acquisition, raising synergy estimate to $2.5 mln
Outlook
KLX expects Q3 revenue between $176 mln and $188 mln
Company sees margins continuing to increase as activity builds
KLX forecasts mid-single-digit sequential growth in base business, excluding Wolf Pack
Result Drivers
HIGHER ACTIVITY LEVELS - Co said increased activity and better absorption of cost structure drove sequential revenue and margin growth
WOLF PACK ACQUISITION - Wolf Pack Rentals contributed to revenue and provided a bargain purchase gain, with integration proceeding swiftly and synergy estimate raised
BASE BUSINESS OUTPERFORMANCE - Excluding Wolf Pack, base business revenue grew more than 13% sequentially, outpacing the 5.8% increase in U.S. Land Rig Count
Company press release: ID:nPn58d2Gka
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | $167.30 mln | $167.50 mln (1 Analyst) |
Q2 Adjusted Net Loss | Beat | $13.20 mln | $16.90 mln (1 Analyst) |
Q2 Net Loss |
| $8.40 mln |
|
Q2 Adjusted EBITDA | Beat | $18.70 mln | $18.50 mln (1 Analyst) |
Q2 Adjusted EBITDA Margin |
| 11.20% |
|
*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 $5.00, about 142.7% above its August 7 closing price of $2.06
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.)