CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
HP posted an adjusted operating loss of $0.38 per share in Q3, deteriorating from a $0.15 loss in Q2 and missing consensus by $0.34, while revenues of $932M fell 8.4% sequentially amid lower activity levels. Adjusted EBITDA of $178M declined 23% sequentially amid persistent margin compression across all segments. Regional headwinds abounded with North America direct margin falling 10% to $215M on reduced average active rigs and pricing pressure, while International plunged 60% to $11.5M primarily due to Middle East conflict impacts starting February 28. Management guided North America direct margin to recover to $230M-$240M in Q4, but provided an exceptionally wide $12M-$32M range for International given ongoing geopolitical uncertainty. HP meaningfully strengthened its balance sheet by completing the Utica Square sale for after-tax proceeds exceeding $100M and retiring $400M in debt ahead of schedule, while returning $25M to shareholders and focusing on the $350M bond maturity in 2027.