KLX Energy Q2 Revenue Jumps 16% on Wolf Pack Deal, Guides Q3 Above Estimates
KLXE sits 25% above its 52-week low of $1.485.
Summary
KLX Energy Services reported Q2 revenue of $167.3M, up 16% sequentially, driven by the Wolf Pack Rentals acquisition and a 13%+ increase in base business. Adjusted EBITDA surged 68% to $18.7M, beating the single-analyst estimate. The company raised its synergy estimate from the Wolf Pack deal to $2.5M and guided Q3 revenue to $176M-$188M, above consensus. This follows the $17M Wolf Pack acquisition in June and the $250M shelf filing in May, signaling a turnaround from the Q1 revenue miss. The strong base business growth, outpacing the U.S. land rig count increase, suggests market share gains. With a market cap of only $44.6M, the improved profitability and guidance could materially shift the risk profile, though the going concern warning remains a backdrop. KLX Energy Services filed an 8-K regarding other events.
At the time of this announcement, KLXE was trading at $1.86 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $44.6M. The 52-week trading range was $1.49 to $4.50. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.