Why Is Liberty Oilfield Services (LBRT) Down 9.3% Since Last Earnings Report?

Core Viewpoint - Liberty Oilfield Services has experienced a decline in share price by approximately 9.3% since the last earnings report, underperforming the S&P 500, raising questions about future performance leading up to the next earnings release [1] Financial Performance - For Q4 2024, Liberty Energy reported an adjusted net income of 10 cents per share, slightly exceeding the Zacks Consensus Estimate of 9 cents, but significantly lower than the previous year's figure of 54 cents due to poor execution and lower activity [2] - The company's revenues were $943.6 million, missing the Zacks Consensus Estimate by 3.4$1.07 billion in the prior-year quarter [3] - Adjusted EBITDA for the quarter was $155.7 million, a decrease from$253 million year-over-year and below the forecast of $170.8 million [3] - Total costs and expenses were reported at$918.7 million, a 3.4% decrease from the previous year and lower than the estimated $950.2 million [10] Shareholder Returns - Liberty returned$175 million to shareholders in 2024 through share repurchases and dividends, repurchasing 1,581,495 shares at an average price of $17.88, representing 1$20.14, totaling approximately $127 million, accounting for 3.8% of shares outstanding [7] - The board declared a quarterly dividend of 8 cents per share, unchanged from the previous quarter, to be paid on March 20 [5] Strategic Initiatives - Liberty announced a collaboration with Cummins Inc. to introduce a natural gas variable speed engine for its digiPrime hydraulic fracturing platform, expected to be deployed in the first half of 2025 [4] - The company accelerated the deployment of its digiTechnologies, achieving a record 7,143 pumping hours on a single fleet for the year, and expanded its natural gas compression and delivery services [8] Market Outlook - The company anticipates continued uncertainties in global oil markets due to geopolitical factors and OPEC+ production decisions but expects no major changes in exploration and production activity plans [13] - For Q1, Liberty expects a modest sequential increase in revenues and adjusted EBITDA, with solid free cash flow generation despite pricing headwinds [14] - The company projects a rise in power demand driven by data centers, reshoring manufacturing, and industrial sector growth, positioning itself to capture this demand with modular power solutions [15] Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 63.27% recently [16] - Liberty Oilfield Services currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [18] VGM Scores - Liberty Oilfield Services has a Growth Score of B, a Momentum Score of F, and a Value Score of A, placing it in the top 20% for the value investment strategy, resulting in an aggregate VGM Score of A [17]