Patterson-UTI Energy, Inc.PTEN will announce its third-quarter financial results on October 22. According to the Zacks Consensus Estimate, the company is expected to report a loss of 9 cents per share, with revenues estimated at $1.17 billion.
Let's explore the elements that may have impacted PTEN's results in the upcoming quarter. Prior to that, it's important to review the company's performance from the previous reported quarter.
Key Points from PTEN's Q2 Earnings and Unexpected Results
PTEN reported a revised net loss of 6 cents per share for the second quarter of 2025, falling short of the Zacks Consensus Estimate which predicted a loss of 4 cents. The year-over-year decrease was primarily due to poor results in the Drilling Services, Completion Services, and Other Services divisions. Nevertheless, the oil and gas drilling company based in Houston, TX, achieved total revenues of $1.2 billion, exceeding the Zacks Consensus Estimate by 0.3%.
PTEN's earnings fell short of the expected forecast in each of the past four quarters, resulting in an average negative deviation of 17.50%.
This is shown in the chart below:
Patterson-UTI Energy, Inc. Stock Price and Earnings Per Share Deviation
Patterson-UTI Energy, Inc. earnings-per-share surprise | Patterson-UTI Energy, Inc. Stock Quote
PTEN Stock's Pattern in Forecast Adjustments
The Zacks Consensus Estimate for third-quarter 2025 earnings has remained unchanged over the last seven days. The projected loss of 9 cents per share shows a drop from the break-even earnings seen in the same period last year. The Zacks Consensus Estimate for revenue suggests a decline of 13.56% compared to the previous year.
Key Elements to Evaluate Before PTEN's Q3 Launch
PTEN generates revenue by assisting oil and gas companies in locating and extracting oil and natural gas. The company accomplishes this through well drilling, completing the wells, and supplying the necessary equipment for these operations.
The reduction in PTEN's expenses is expected to have boosted its net profit. The company's operational costs and expenses are forecasted to amount to $1.2 billion in the third quarter, a 49.7% decrease compared to the same period last year. This demonstrates the company's dedication to streamlining operations and maintaining fiscal responsibility despite challenging market conditions.
Its immediate operational expenses are projected to drop from $1 billion to $885.2 million during the same period. Additionally, the company's costs related to depreciation, depletion, amortization, and impairment are expected to fall from $374.7 million to $230.3 million.
On a negative outlook, PTEN's revenues are expected to have declined during the upcoming quarter. The Zacks Consensus Estimate for third-quarter revenues has dropped compared to the previous year's $1.4 billion. This decline is due to weak results in the Completion Services, Drilling Services, Drilling Products, and Other segments.
Although revenues are anticipated to have dropped in several areas, PTEN's cost management strategies are expected to have mitigated the financial effect in the next quarter's outcomes.
What Can Our Model Forecast Regarding PTEN?
The established Zacks model does not definitively forecast an earnings surprise for Patterson-UTI Energy in this instance. The mix of a favorable Earnings ESP along with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) typically boosts the likelihood of an earnings beat. However, this is not applicable in this situation.
PTEN’s Earnings ESP:The Earnings ESP, indicating the gap between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company stands at -15.24%.
You can discover top stocks to purchase or divest prior to their announcements using our Earnings ESP Filter.
Zacks Rank of PTEN:PTEN currently has a Zacks Rank of 3.
Stocks to Consider
Here are several companies in the energy sector that you might want to look into, as they possess the ideal mix of factors to exceed earnings expectations this season.
Archrock, Inc.AROC currently has an Earnings ESP of +7.32% and a Zacks Rank of #2. You can view the full list of today's Zacks #1 Rank stocks here.
Archrock is scheduled to release its earnings after the market closes on October 28. The company is a top provider of natural gas compression services to clients in the oil and natural gas sector across the United States. Archrock has exceeded the Zacks Consensus Estimate in each of the past four quarters, with an average surprise of 6.5%. With a valuation of approximately $4.25 billion, Archrock's stock has increased by 15.6% over the last year.
Antero MidstreamAM is scheduled to announce its earnings on October 29, following the market close. The company currently holds an Earnings ESP of +2.46% and a Zacks Rank of #3.
Antero Midstream is a midstream energy firm offering services such as gathering, compression, processing, and water management to aid natural gas and natural gas liquids production, mainly for Antero Resources within the Appalachian Basin. Over the last four quarters, AM's profits exceeded the Zacks Consensus Estimate on two occasions, matched it once, and fell short once, leading to an average surprise of 1.13%. With a valuation of approximately $8.61 billion, AM's stock has increased by 19.7% over the past year.
TransoceanRIG currently has an Earnings ESP of +18.42% and holds a Zacks Rank of #3. The company is set to announce its earnings on October 29.
Transocean is a top offshore drilling company offering drilling services for oil and gas wells across the globe. The firm has exceeded the Zacks Consensus Estimate three times in the past four quarters and fallen short once, resulting in an average negative surprise of 195.83%. With a market value of approximately $2.94 billion, Transocean's stock has declined by 17.5% over the last year.
This piece was first released on Zacks Investment Research (Healthy urvival).