Oilfield water management company Select Water Solutions (NYSE:WTTR) will be announcing earnings results this Monday before market hours. Here’s what investors should know.
Select Water Solutions beat analysts’ revenue expectations last quarter, reporting revenues of $395.8 million, up 8.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Select Water Solutions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Select Water Solutions’s revenue to grow 23.4% year on year, a reversal from the 13.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Select Water Solutions rarely misses Wall Street’s revenue estimates.
Looking at Select Water Solutions’s peers in the oilfield services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ProPetro delivered year-on-year revenue growth of 20.9%, beating analysts’ expectations by 14.1%, and TETRA Technologies reported revenues up 9.6%, topping estimates by 7.7%. ProPetro traded up 4.1% following the results while TETRA Technologies was also up 7.6%.
Read our full analysis of ProPetro’s results here and TETRA Technologies’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the oilfield services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 10.8% on average over the last month. Select Water Solutions is down 17.5% during the same time and is heading into earnings with an average analyst price target of $25 (compared to the current share price of $16.30).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.