Liberty Energy Q2 Earnings on Deck: Here's How It Will Fare

Liberty Energy Inc. LBRT, a leading provider of hydraulic services and related technologies to onshore oil and natural gas exploration and production companies in North America, is set to report second-quarter earnings on July 24, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 15 cents per share and the same for revenues is pinned at $1.01 billion.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Let us delve into the factors that might have influenced LBRT’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 LBRT’s Q1 EarningsIn the previous reported quarter, the Denver, CO-based oilfield service company’s earnings marginally beat the consensus mark. LBRT reported adjusted net income of 4 cents per share, which was 1 cent up from the Zacks Consensus Estimate. The modest beat reflected improved operational efficiency and higher utilization of its frac and wireline fleets. The company's revenues of $977.5 million also beat the Zacks Consensus Estimate by 3.4%. LBRT’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing once, delivering an average surprise of 6.98%.This is depicted in the graph below: Liberty Energy Inc. Price and EPS Surprise Liberty Energy Inc. price-eps-surprise | Liberty Energy Inc. QuoteTrend in Estimate Revision of LBRTThe Zacks Consensus Estimate for second-quarter 2025 earnings has seen no upward revisions and two downward movements in the past 30 days. The estimated figure indicates a 75.41% year-over-year bottom-line decline. The Zacks Consensus Estimate for revenues indicates a deterioration of 13.04% from the year-ago period.Factors to Consider Ahead of LBRT’s Q2 ReleaseLBRT's revenues are likely to have suffered in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is down from the year-ago quarter’s $1.16 billion.This situation is likely to have stemmed from a subdued global macroeconomic environment. Demand for hydraulic fracturing services typically fluctuates with energy prices and exploration activity. When energy prices are unstable or remain low, demand often declines, which can negatively affect the company’s earnings and cash flow.On a positive note, the reduction in LBRT's costs is likely to have boosted its bottom line. The company’s operating expenses are likely to reach $963.3 million in the second quarter, down 5.4% from the year-ago period’s level. Its cost of services is expected to decrease from $835.8 million to $783.6 million. These cost reductions might have provided modest relief, helping to partially offset the impact of lower revenues.What Does Our Model Say About LBRT?The proven Zacks model does not conclusively show an earnings beat for Liberty 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.Earnings ESP of LBRT: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -6.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.LBRT’s Zacks Rank: LBRT currently carries a Zacks Rank #4 (Sell).Stocks to ConsiderHere 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 $45.78 billion, Valero Energy’s shares have lost 1.9% in a year.Ovintiv Inc. OVV currently 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 14.3% 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 10.1% in a year.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>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 Valero Energy Corporation (VLO): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Liberty Energy Inc. (LBRT): Free Stock Analysis Report Ovintiv Inc. (OVV): 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