Patterson-UTI Energy, Inc. PTEN is set to report first-quarter earnings on April 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 $1.19 billion.

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 Q4 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oilfield services company’s earnings missed the consensus mark by 2 cents. PTEN reported adjusted net loss of 12 cents per share, which was wider than the Zacks Consensus Estimate of a 10-cent loss. This was due to poor contributions from the Drilling Services and Completion Services segments. Moreover, revenues of $1.2 billion missed the Zacks Consensus Estimate by 4.2%.

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 37.27%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

This is depicted in the graph below: 

Trend in Estimate Revision for PTEN Stock

The Zacks Consensus Estimate for first-quarter 2025 earnings has not witnessed any movement in the past seven days. The estimated figure indicates a 126.67% year-over-year decline. The Zacks Consensus Estimate for revenues implies a deterioration of 21.25% from the year-ago period.

Factors to Consider Ahead of PTEN’s Q4 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 $1,207.5 million in the first quarter, which is 15.2% 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 $1,077.1 million to $897.6 million in the same time frame.  Furthermore, the company’s depreciation, depletion, amortization and impairment costs are anticipated to decrease from $275 million to $234.7 million.

The company's strategy to integrate its Drilling and Completions businesses has the potential to create a sustainable competitive advantage. PTEN’s advancement in deploying 100% natural gas-powered Emerald line of completion equipment is likely to have enhanced its competitive position in the market.

On a bearish note, PTEN's revenues are likely to have suffered in the quarter to be reported. The Zacks Consensus Estimate predicts first-quarter revenues to decrease from the year-ago quarter’s $1,510.4 million. 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 will play a key role in minimizing the financial impact in the to-be-reported quarter.

What Does Our Model Predict About PTEN?

Our proven model predicts an earnings beat for Patterson-UTI Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly 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 +25.00%.

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 #3.

Other Stocks to Consider

Here are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat in this season.

Antero Resources Corporation AR has an Earnings ESP of +6.19% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is scheduled to release earnings on April 30. Notably, the Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates 1604.76% year-over-year growth. Valued at around $10.30 billion, Antero Resources’ shares have gained 17.6% in a year.

Comstock Resources, Inc. CRK has an Earnings ESP of +6.19% and a Zacks Rank #2 at present. Comstock Resources is scheduled to release earnings on April 30.

The Zacks Consensus Estimate for Comstock Resources’ 2025 earnings per share indicates 600% year-over-year growth. Valued at around $5.65 billion, Comstock Resources’ shares have gained 116.2% in a year.

Clearway Energy, Inc. CWEN has an Earnings ESP of +108.50% and a Zacks Rank #3 at present. Clearway Energy is scheduled to release earnings on April 30.

The Zacks Consensus Estimate for Clearway Energy’s 2025 earnings per share indicates 600% year-over-year growth. Valued at around $5.88 billion, Clearway Energy’s shares have gained 32.8% in a year.

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Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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