Patterson-UTI Energy, Inc. PTEN is set to report fourth-quarter earnings on Feb. 5. The Zacks Consensus Estimate for earnings is pegged at a loss of 10 cents per share and the same for revenues is pinned at $1.21 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.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oilfield services company’s earnings missed the consensus mark by a cent. PTEN reported breakeven earnings per share in the third quarter of 2024. This was due to poor contribution from the Drilling Services, Completion Services and Other Services segments. However, revenues of $1357 million beat the Zacks Consensus Estimate by 5.3%. PTEN’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the mark in the remaining two, delivering an average negative surprise of 30.88%. 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

Trend in Estimate Revision for PTEN Stock

The Zacks Consensus Estimate for fourth-quarter 2024 earnings has not witnessed any movement in the past seven days. The estimated figure indicates a 152.63% year-over-year decline. The Zacks Consensus Estimate for revenues indicates an increase of 23.44% from the year-ago period.

Factors to Consider Ahead of PTEN’s Q4 Release

PTEN's revenues are likely to have suffered in the quarter to be reported. It 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.

Our model predicts fourth-quarter revenues to decrease to $1,205.4 million from the year-ago quarter’s $1,584.3 million. This can be attributed to the poor performance of the Completion Services, Drilling Services and Other Services segments.

Its revenues from the Completion Services segment are expected to decrease from $1,014.4 million to $736.5 million in the same time frame. The Drilling Services segment is also expected to have seen revenue decline, decreasing from $463.6 million to $364.4 million. Additionally, PTEN’s revenues from the Other segment are anticipated to have fallen from $18.3 million to $15.1 million during the same period.

On a positive note, the decrease in PTEN's costs is likely to have improved its bottom line. The company’s operating costs and expenses are predicted to have reached $1,472.6 million in the fourth quarter, which is 15.6% down from the year-ago period’s level. Its direct operating costs are expected to have decreased from $1,119.1 million to $918.1 million in the same time frame.

Furthermore, the company’s depreciation, depletion, amortization and impairment costs are anticipated to have decreased from $278.8 1 million to $254.9 million.

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?

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 -1.27%.

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 (Hold).

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 reporting cycle.

California Resources CRC has an Earnings ESP of +2.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on March 3. Notably, the Zacks Consensus Estimate for California’s 2025 earnings per share indicates 8.03% year-over-year growth. Valued at around $4.50 billion, CRC’s shares have risen 6% in a year.

Cheniere Energy, Inc. LNG has an Earnings ESP of +9.62% and a Zacks Rank #2 at present. The firm is scheduled to release earnings on Feb. 20.

LNG’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the other one, delivering an average surprise of 87.51%. Valued at around $50.18 billion, LNG has gained 43.3% in a year.

Range Resources RRC has an Earnings ESP of +1.96% and a Zacks Rank #2 at present. The firm is scheduled to release earnings on Feb. 25.

RRC’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.82%. Valued at around $8.94 billion, LNG has gained 34.5% in a year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Range Resources Corporation (RRC) : Free Stock Analysis Report

Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

California Resources Corporation (CRC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research