Liberty Energy Q1 Earnings on Deck: Here's What to Expect

Liberty Energy Inc. LBRT, a Denver, CO-based oilfield service, is set to report first-quarter 2025 earnings on April 16, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at 3 cents per share and the same for revenues is pinned at $948.8 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let us delve into the factors that might have influenced LBRT’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of LBRT’s Q4 Earnings

In the last reported quarter, the company’s earnings marginally beat the consensus mark. LBRT, a leading provider of hydraulic services and related technologies to onshore oil and natural gas exploration and production companies in North America, reported an earnings of 10 cents per share, which beat the Zacks Consensus Estimate by 1 cent. This was primarily driven by a year-over-year decrease in costs and expenses. However, revenues of $943.6 million missed the Zacks Consensus Estimate by 3.4% due to soft industry activity.

LBRT’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the mark in two, delivering an average negative surprise of 4.13%.

This is depicted in the graph below:

Liberty Energy Inc. Price and EPS Surprise

Liberty Energy Inc. price-eps-surprise | Liberty Energy Inc. Quote

Trend in Estimate Revision of LBRT

The Zacks Consensus Estimate for first-quarter 2025 earnings has moved down a penny (or 25%) to 3 cents per share in the past seven days. The estimated figure indicates a 93.8% year-over-year decline. The Zacks Consensus Estimate for revenues indicates a deterioration of 11.6% from the year-ago period.

Factors to Consider Ahead of LBRT’s Q1 Release

LBRT's revenues are likely to have suffered in the quarter to be reported. Our model predicts first-quarter revenues to be down to $919.4 million from the year-ago quarter’s level of $1.1 billion. This can be attributed to the uncertainties that the oil markets face due to geopolitical factors, a sluggish completion services market coupled with lower customer activity levels and a near-term price weakness due to a slowdown in fracking activity that has extended from 2024 to early 2025. All these factors are likely to weigh on the company’s earnings and cash flow potential.

On a positive note, the reduction in LBRT's costs is likely to have boosted its bottom line. The company’s operating expenses are anticipated to have reached $943.4 million in the first quarter of 2025, down 1.5% from the year-ago period’s level. Its cost of services is expected to have decreased from $782.7 million to $760.2 million. On the other hand, general and administrative expenses are anticipated to have dropped from $53 million to $49.9 million in the same period. These cost reductions should have provided modest relief, partially offseting the adverse impact on revenues.

What Does Our Model Say About LBRT?

The proven Zacks model does not conclusively show an earnings beat for Liberty Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Earnings ESP of LBRT: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -5.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

LBRT’s Zacks Rank: LBRT currently carries a Zacks Rank of 3.

Stocks With Favorable Combination

While an earnings beat looks uncertain for Liberty, here are some firms from the energy space that you may want to consider on the basis of our model:

Antero Resources Corporation AR has an Earnings ESP of +7.65% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

AR is scheduled to release earnings on April 30. Notably, the Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates 1590.48% year-over-year growth. Valued at around $9.93 billion, AR’s shares have gained 14.1% in a year.

Antero Midstream Corporation AM has an Earnings ESP of +1.45% and a Zacks Rank #3. AM is scheduled to release earnings on April 30.

The Zacks Consensus Estimate for Antero Midstream’s 2025 earnings per share indicates 13.25% year-over-year growth. Valued at around $7.60 billion, AM’s shares have gained 18% in a year.

Baker Hughes Company BKR has an Earnings ESP of +1.54% and a Zacks Rank #3. BKR is scheduled to release earnings on April 22.

The Zacks Consensus Estimate for Baker Hughes’ 2025 earnings per share indicates 8.94% year-over-year growth. Valued at around $37.55 billion, BKR’s shares have gained 16.9% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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