Patterson-UTI Energy to Report Q3 Earnings: What's in the Offing?

Patterson-UTI Energy, Inc. PTEN is set to report third-quarter earnings on Oct. 22. The Zacks Consensus Estimate for earnings is pegged at a loss of 9 cents per share and the same for revenues is pinned at $1.17 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 PTEN’s Q2 Earnings & Surprise HistoryPTEN recorded an adjusted net loss of 6 cents per share in second-quarter 2025, missing the Zacks Consensus Estimate of a loss of 4 cents. The year-over-year decline was mainly caused by weak performance in the Drilling Services, Completion Services and Other Services segments. However, Houston, TX-based oil and gas drilling company’s total revenues of $1.2 billion beat the Zacks Consensus Estimate by 0.3%.PTEN’s earnings missed the consensus estimate in each of the trailing four quarters, delivering an average negative surprise of 17.50%. 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. QuotePTEN Stock’s Trend in Estimate RevisionThe Zacks Consensus Estimate for third-quarter 2025 earnings has not witnessed any movement in the past seven days. The estimated loss of 9 cents per share indicates a decline from the break-even earnings reported in the year-ago period. The Zacks Consensus Estimate for revenues implies a deterioration of 13.56% from the year-ago period.Factors to Consider Ahead of PTEN’s Q3 ReleasePTEN 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 $1.2 billion in the third quarter, which is 49.7% down from the year-ago period’s level. This highlights the company’s commitment to optimizing operations and exercising financial prudence amid a tough market landscape.Its direct operating costs are expected to decrease from $1 billion to $885.2 million in the same time frame. Furthermore, the company’s depreciation, depletion, amortization and impairment costs are anticipated to decrease from $374.7 million to $230.3 million.On a bearish note, PTEN's revenues are likely to have suffered in the quarter to be reported. The Zacks Consensus Estimate for third-quarter revenues is down from the year-ago quarter’s $1.4 billion. This can be attributed to the poor performance of the Completion Services, Drilling Services, Drilling Products and Other segments.While revenues are expected to have declined across multiple segments, PTEN’s cost-control measures are likely to have helped cushion the financial impact in the upcoming quarterly results.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 -15.24%.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.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.Archrock, Inc. AROC has an Earnings ESP of +7.32% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is set to announce its earnings on Oct. 28, following the close of market trading. The company is a leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the United States. Archrock’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 6.5%. Valued at around $4.25 billion, Archrock’s shares have gained 15.6% in a year.Antero Midstream AM is slated to release its earnings on Oct. 29 after the closing bell. The company currently has an Earnings ESP of +2.46% and a Zacks Rank #3.Antero Midstream is a midstream energy company that provides gathering, compression, processing and water handling services to support natural gas and natural gas liquids production, primarily for Antero Resources in the Appalachian Basin. In the past four quarters, AM’s earnings beat the Zacks Consensus Estimate twice, reported one break-even earnings and missed once, resulting in an average surprise of 1.13%. Valued at around $8.61 billion, AM’s shares have gained 19.7% in a year.Transocean RIG has an Earnings ESP of +18.42% and a Zacks Rank #3 at present. It is scheduled to release earnings on Oct. 29.Transocean is a leading offshore drilling contractor that provides drilling services for oil and gas wells worldwide. The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, delivering an average negative surprise of 195.83%. Valued at around $2.94 billion, Transocean’s shares have lost 17.5% in a year.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 Transocean Ltd. (RIG): Free Stock Analysis Report Patterson-UTI Energy, Inc. (PTEN): Free Stock Analysis Report Antero Midstream Corporation (AM): Free Stock Analysis Report Archrock, Inc. (AROC): 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