Overview

* NESR Q2 revenue grows 0.7% YoY, beating analyst expectations

* Adjusted net income for Q2 beats estimates, reaching $20.1 mln

* Adjusted EBITDA rises 13% sequentially, exceeding analyst forecasts

Outlook

* Company anticipates steady growth due to countercyclical investment strategy

* NESR expects continued leadership in Production Services and growth in Drilling

* Company sees diversified country and technology mix driving future revenue

Result Drivers

* DIVERSIFIED MIX - Revenue growth driven by diversified country and technology mix despite global headwinds, per CFO Stefan Angeli

* COST CONTROL - Sequential net income improvement attributed to cost control measures and incremental revenue from existing equipment and personnel

* OPERATIONAL EXECUTION - Strong operational execution reflected in 13% sequential increase in adjusted EBITDA and improved margins

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $327.40 $316.60

Revenue mln mln (3

Analysts

)

Q2 Beat $20.10 $18 mln

Adjusted mln (2

Net Analysts

Income )

Q2 Net $15.20

Income mln

Q2 Beat $70.60 $69.30

Adjusted mln mln (3

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil related services and equipment peer group is "buy"

* Wall Street's median 12-month price target for National Energy Services Reunited Corp ( NESR ) is $12.00, about 39.3% above its August 19 closing price of $7.29

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)