Patterson-UTI Energy, Inc. PTEN is set to report second-quarter earnings on July 23. The Zacks Consensus Estimate for earnings is pegged at a loss of 4 cents per share and the same for revenues is pinned at $1.21 billion.
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Let us delve into the factors that are likely to have influenced PTEN’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of PTEN’s Q1 Earnings & Surprise History
PTEN posted breakeven adjusted earnings per share for the first quarter of 2025. The metric outperformed the Zacks Consensus Estimate of a loss of 4 cents per share. This outperformance was driven by an 11.2% year-over-year reduction in costs and expenses. Moreover, Houston, TX-based oil and gas drilling company’s total revenues of $1.3 billion beat the Zacks Consensus Estimate by 7.7%.
PTEN’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed the remaining three, delivering an average negative surprise of 16.11%.
This is depicted in the graph below:
Patterson-UTI Energy, Inc. Price and EPS Surprise
Patterson-UTI Energy, Inc. price-eps-surprise | Patterson-UTI Energy, Inc. Quote
PTEN Stock’s Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter 2025 earnings has not witnessed any movement in the past seven days. The estimated figure indicates a 180% year-over-year decline. The Zacks Consensus Estimate for revenues implies a deterioration of 10.09% from the year-ago period.
Factors to Consider Ahead of PTEN’s Q2 Release
PTEN makes money by helping oil and gas companies find and extract oil and natural gas. The company does this by drilling wells, completing those and providing the tools needed for these processes.
The decrease in PTEN's costs is likely to have improved its bottom line. The company’s operating costs and expenses are predicted to reach $1.26 billion in the second quarter, which is 3.4% down from the year-ago period’s level. This reflects the company’s strategic focus on streamlining operations and maintaining financial discipline in a challenging market environment.
Its direct operating costs are expected to decrease from $971.2 million to $961.2 million in the same time frame. Furthermore, the company’s depreciation, depletion, amortization and impairment costs are anticipated to decrease from $267.6 million to $230 million.
On a bearish note, PTEN's revenues are likely to have suffered in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.21 billion, down from the year-ago quarter’s $1.35 billion. This can be attributed to the poor performance of the Completion Services, Drilling Services, Drilling Products and Other segments.
Although revenue declines are expected across several segments, PTEN’s efforts to manage costs are likely to have played a key role in minimizing the financial impact in the to-be-reported quarter.
What Does Our Model Predict About PTEN?
The proven Zacks model does not conclusively predict an earnings beat for Patterson-UTI Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
PTEN’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -7.03%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank of PTEN: PTEN currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this season.
Valero Energy Corporation VLO has an Earnings ESP of +1.22% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero Energy is scheduled to release earnings on July 24. Its earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing once, delivering an average surprise of 122.87%. Valued at around $44.85 billion, Valero Energy’s shares have lost 3.6% in a year.
Ovintiv Inc. OVV has an Earnings ESP of +7.28% and a Zacks Rank #3. It is scheduled to release earnings on July 24.
Notably, Ovintiv’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 27.83%. Valued at around $10.22 billion, Ovintiv’s shares have lost 17.5% in a year.
Phillips 66 PSX has an Earnings ESP of +4.25% and a Zacks Rank #3 at present. This Houston, TX-based oil and gas refining and marketing company is scheduled to release earnings on July 25.
Phillips 66’searnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing once, delivering an average surprise of 10.56%. Valued at around $50.39 billion, Phillips 66’sshares have lost 11.1% in a year.
5 Stocks Set to Double
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Download Atomic Opportunity: Nuclear Energy's Comeback free today.Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report
Valero Energy Corporation (VLO) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
Ovintiv Inc. (OVV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
