Why Is Patterson-UTI (PTEN) Down 11.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Patterson-UTI (PTEN). Shares have lost about 11.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Patterson-UTI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.Patterson-UTI Energy Q2 Earnings MissPatterson-UTI Energy reported a second-quarter 2025 adjusted net loss of 6 cents per share, which was wider than the Zacks Consensus Estimate of a 4-cent loss. The bottom line declined from the year-ago quarter's level of 5 cents profit. This year-over-year deterioration was primarily due to the poor contributions from the Drilling Services, Completion Services and Other Services segments.Total revenues of $1.2 billion beat the Zacks Consensus Estimate by 0.3%. This was due to higher-than-expected revenues from Drilling Services and Drilling Products. Revenues of Drilling Services and Drilling Products beat the consensus mark of $396 million and $85 million, respectively. However, the top line decreased 9.6% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from Drilling Services, Completion Services and Other Services segments.Patterson-UTI’s board of directors declared a quarterly dividend of 8 cents per share to its common shareholders of record as of Sept. 2, 2025. The payout, which is unchanged from the previous quarter, will be made on Sept. 15.Segmental Performance                    Drilling Services: Revenues in this segment totaled $403.8 million, down 8.3% from the prior-year quarter’s figure of $440.3 million. However, the top line beat our estimation of $365.1 million.Operating income amounted to $40.6 million compared with $76.1 million in the second quarter of 2024. However, the figure beat our operating income estimate of $24.1 million.As of June 30, 2025, the company had $312 million in future drilling revenues under term contracts.Completion Services: This segment’s revenues of $719.3 million dropped about 10.7% from the year-ago quarter’s figure of $805.4 million. Moreover, the metric missed our estimation of $762.4 million.Operating loss totaled $29.2 million against a profit of $10.7 million in the second quarter of 2024. However, the figure was narrower than our operating loss estimate of $43.4 million.Drilling Products: This segment’s revenues of $88.4 million increased about 2.7% from the year-ago quarter’s figure of $86.1 million. Additionally, the amount beat our estimation of $85.8 million.Operating profit reached $6.8 million, indicating a 21.1% decrease compared with the second quarter of 2024. The number also missed our operating profit estimate of $20.6 million.Other Services: Revenues amounted to $7.8 million, down 52.7% from the year-ago quarter’s figure of $16.5 million. However, the figure beat our estimation of $5.6 million.Operating loss amounted to $2 million against a profit $0.4 million in the second quarter of 2024. Additionally, the figure missed our estimation of an operating income of $0.1 million.Capital Expenditure & Financial PositionIn the reported quarter, Patterson-UTI spent $144.2 million on capital programs compared with $130.5 million in the prior year period.As of June 30, 2025, the company had cash and cash equivalents worth $185.9 million and long-term debt of $1.2 billion. The company’s debt-to-capitalization was 26.7%.This company returned $56 million to its shareholders in the second quarter of 2025. During the same period, it repurchased $20 million worth of shares. As of March 31, 2025, the company had $16 million remaining under its share repurchase authorization.The company reported total operating costs and expenses of $1248.8 million compared with $1303 million in the second quarter of 2024.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -33.33% due to these changes.VGM ScoresAt this time, Patterson-UTI has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Patterson-UTI has a Zacks Rank #4 (Sell). 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(PTEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks