Why Is ProPetro (PUMP) Down 6.2% Since Last Earnings Report?

A month has gone by since the last earnings report for ProPetro Holding (PUMP). Shares have lost about 6.2% 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 ProPetro 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 most recent earnings report in order to get a better handle on the important drivers.ProPetro Q2 Earnings and Revenues Miss EstimatesProPetro reported a second-quarter 2025 adjusted loss per share of 7 cents in contrast to the Zacks Consensus Estimate of a profit of 3 cents. This underperformance could be primarily attributed to weak pricing and reduced activity in the reported quarter. The bottom line was also wider than the prior-year quarter’s reported loss of 3 cents.Revenues of $326.2 million marginally missed the consensus mark of $327 million. This underperformance is attributed to lower-than-expected service revenues in the Cementing segment, which totaled $32.4 million, down 3% from the consensus estimate. Moreover, the top line decreased 8.6% from the year-ago quarter’s level of $357 million. This was due to a year-over-year decline in service revenues from Hydraulic Fracturing, Wireline and All Other.Adjusted EBITDA amounted to $49.6 million, down 31.8% from $72.7 million reported in the previous quarter. The figure also missed our model estimate of $61.1 million.During the quarter, the company signed its first 10-year agreement to deliver around 80 megawatts of long-term PROPWR service to a major oil and gas operator in the Permian Basin. More than half of ProPetro’s operating hydraulic horsepower is now covered by long-term contracts, which include two Tier IV DGB dual-fuel fleets and four FORCE electric-powered fracturing fleets.Since launching its $200 million share repurchase program in May 2023, the company has repurchased 13 million shares, representing 11% of its outstanding stock. In May 2025, the program was extended through December 2026. No shares were repurchased this quarter, as the company directed its efforts toward expanding the PROPWR business.Pressure Pumping SegmentProPetro provides hydraulic fracturing, cementing and acidizing functions through its Pressure Pumping segment. The business contributed 100% to PUMP's total revenues in the quarter under review.Service revenues from this unit decreased 8.6% to $326.2 million from the prior-year quarter’s level. However, the figure was slightly up from our estimate of $325.4 million.Costs & Financial PositionTotal costs and expenses were $329.3 million for the second quarter, which was down 7.9% from the prior-year quarter’s level.  However, the amount surpassed our prediction of $322.2 million. The cost of services (exclusive of depreciation and amortization) was $253.2 million compared with $265.8 million in the prior-year quarter. On the other hand, general and administrative expenses (inclusive of stock???based compensation) were $28.5 million compared with $30.9 million in the prior-year quarter. Depreciation and amortization were reduced 28.3% to $43.3 million from the prior-year quarter's level.As of June 30, 2025, PUMP had $74.8 million in cash and cash equivalents and $45 million in borrowings under its ABL Credit Facility. Total liquidity was $178 million, including $103 million in available credit at June-end. Long-term debt amounted to $45 million. The total debt-to-total capital was 6.5%.In the second quarter of 2025, the company spent $73 million on capital projects but paid $37 million during the period. Of this, $30 million went to maintaining the completions business and $43 million was used for developing PROPWR equipment. The difference between what was spent and paid is mainly because some PROPWR costs were covered by a financing partner and some bills are still unpaid.During the second quarter, the company reported $54 million in net cash provided by operating activities, $36 million in net cash used in investing activities and $26 million in free cash flow from the Completions Business.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -172.22% due to these changes.VGM ScoresCurrently, ProPetro has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. 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 A. 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 ProPetro has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerProPetro belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, FMC Technologies (FTI), has gained 1.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.FMC Technologies reported revenues of $2.53 billion in the last reported quarter, representing a year-over-year change of +9%. EPS of $0.68 for the same period compares with $0.43 a year ago.For the current quarter, FMC Technologies is expected to post earnings of $0.65 per share, indicating a change of +1.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1% over the last 30 days.FMC Technologies has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for 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 ProPetro Holding Corp. (PUMP): Free Stock Analysis Report TechnipFMC plc (FTI): 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