National Energy Services Reunited Corp. (NASDAQ:NESR) shares surged 10.27% in pre-market trading on Monday after the energy services company delivered second-quarter results comfortably ahead of Wall Street expectations.
Adjusted earnings per share reached $0.44, beating the analyst consensus of $0.34 by $0.10, while revenue also came in significantly above market forecasts
Quarterly revenue climbed to $520.8 million, exceeding the consensus estimate of $444.11 million and representing growth of 59.1% from $327.4 million in the corresponding period a year earlier. Net income nearly triples as activity increases National Energy Services Reunited reported second-quarter net income of $44.0 million, an increase of 189.6% year-on-year and 84.7% compared with the previous quarter. The company attributed the improvement primarily to higher activity across its hydraulic fracturing, well testing and wireline logging businesses. “The second quarter was another exceptional quarter for NESR, delivering record revenue, record Adjusted EBITDA and our strongest quarterly earnings to date,” said Stefan Angeli, Chief Financial Officer. “Revenue grew 59% year-over-year to $520.8 million, while net income nearly tripled from the prior year to $44.0 million, demonstrating the significant operating leverage embedded in our business.” Adjusted EBITDA reached a record $106.2 million, increasing 50.5% from the same quarter last year and 38.5% sequentially.
Diluted earnings per share were $0.43, representing a year-on-year improvement of $0.27. Cash flow strengthens NESR balance sheet Cash generation was another standout feature of the quarter. Operating cash flow surged 466.6% year-on-year to $174.0 million, while free cash flow reached $99.9 million.