Overview

* NESR Q3 revenue declines 12.2% yr/yr, missing analyst expectations

* Adjusted EBITDA for Q3 misses analyst estimates, reflecting operational challenges

* Net income for Q3 rises 16.7% sequentially, driven by tax adjustments

Outlook

* Company expects improved operating cash flow in Q4 due to enhanced collection activities

* Company focuses on maintaining strong margin performance and achieving exceptional growth

* Company prepares for execution of recently awarded contracts with strategic investments

Result Drivers

* COST REDUCTION - CFO Stefan Angeli attributes profitability to cost reduction initiatives and operational efficiency despite lower revenue

* CONTRACT TRANSITION - Reduced activity due to contract transition in Saudi Arabia impacted results, offset by tax adjustments

* INVESTMENT IN CAPACITY - Co continues to invest in capital expenditures and strengthen organizational capacity for new contracts

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $295.30 $307.44

Revenue mln mln (5

Analysts

)

Q3 EPS $0.18

Q3 Miss $15.40 $17.33

Adjusted mln mln (3

Net Analysts

Income )

Q3 Net $17.70

Income mln

Q3 Miss $64 mln $69.62

Adjusted mln (5

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $15.00, about 13.1% above its November 12 closing price of $13.03

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

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(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.)