ProFrac (NASDAQ:ACDC) Announces Earnings Results

ProFrac (NASDAQ:ACDC) released its earnings results on Thursday. The company reported ($0.45) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.26) by ($0.19), FiscalAI reports. ProFrac had a negative return on equity of 45.18% and a negative net margin of 22.83%. The business had revenue of $511.10 million during the quarter, compared to analysts’ expectations of $555.66 million.

Here are the key takeaways from ProFrac’s conference call:

• ProFrac’s Q3 adjusted EBITDA fell to $65 million from $69 million in Q2, as weaker proppant results and September downtime in stimulation services outweighed modest revenue growth; free cash flow improved to $14 million.
• Proppant Production was a major pressure point, with revenue down to $101 million from $121 million and adjusted EBITDA dropping to $2.4 million from $6 million, amid lower West Texas volumes, competitive pricing, and higher costs.
• Management sees a tightening frac market heading into 2027, citing retiring equipment, long replacement lead times, and customer inquiries for incremental dedicated fleets; it expects pricing gains to build, but said new capacity would require attractive contract economics and would not be built speculatively.
• Flotek revenue and adjusted EBITDA rose sequentially to $117 million and $22 million, respectively, while manufacturing revenue increased to $53 million; management pointed to demand tied to power infrastructure as a growth opportunity.
• Financing changes extended the Alpine term loan maturity to 2030, reduced near-term scheduled payments, and helped lower principal debt by $60 million through an affiliate-loan exchange; quarter-end principal debt was about $1.05 billion, with $113 million due in the next 12 months.

ProFrac Trading Up 3.1%

ACDC traded up $0.09 during trading on Friday, hitting $2.79. 1,573,831 shares of the stock were exchanged, compared to its average volume of 1,437,078. The firm has a 50 day simple moving average of $4.63 and a 200 day simple moving average of $5.52. The firm has a market cap of $509.03 million, a price-to-earnings ratio of -1.20 and a beta of 1.48. ProFrac has a 1 year low of $2.66 and a 1 year high of $8.22. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.59 and a current ratio of 0.84.

Insider Buying and Selling at ProFrac

In other news, major shareholder Holdings Lp Thrc bought 30,820 shares of the stock in a transaction on Tuesday, August 25th. The stock was acquired at an average cost of $4.81 per share, for a total transaction of $148,244.20. Following the acquisition, the insider owned 83,816,235 shares of the company’s stock, valued at $403,156,090.35. This represents a 0.04% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Matthew Wilks acquired 22,481 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was acquired at an average cost of $5.44 per share, with a total value of $122,296.64. Following the completion of the purchase, the chief executive officer owned 502,097 shares of the company’s stock, valued at $2,731,407.68. This trade represents a 4.69% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought a total of 2,014,454 shares of company stock valued at $9,750,117 in the last ninety days. Corporate insiders own 2.23% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Wall Street Zen cut shares of ProFrac from a “hold” rating to a “sell” rating in a report on Saturday, October 24th. Morgan Stanley decreased their price objective on shares of ProFrac from $5.00 to $4.50 and set an “underweight” rating for the company in a report on Thursday, August 20th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of ProFrac in a research report on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average target price of $5.25.

ProFrac Company Profile

ProFrac Holding Corp. is an energy services company that provides hydraulic fracturing and other well-stimulation services to oil and natural gas producers. Through its operations, the company supports the development and completion of unconventional wells, primarily in North American onshore energy markets.

The company’s activities include pressure pumping and hydraulic fracturing services, proppant production and distribution, and the manufacture, sale, and maintenance of equipment used in well-completion operations.