ProFrac Holding Corp. (ACDC) Reports Q4 Loss, Lags Revenue Estimates

ProFrac Holding Corp. (ACDC) recently reported a quarterly loss of $0.63 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.39. In the same quarter last year, the company reported a loss of $0.19 per share. These figures have been adjusted to exclude non-recurring items.

This report indicates an earnings surprise of -61.54%. In the previous quarter, ProFrac was expected to report a loss of $0.14 per share, but it actually posted a loss of $0.13, leading to a positive surprise of 7.14%.

Out of the last four quarters, ProFrac Holding Corp. has surpassed consensus earnings per share (EPS) estimates only once.

In terms of revenue, ProFrac generated $454.7 million for the quarter ending December 2024, which fell short of the Zacks Consensus Estimate by 1.46%. This revenue is also down from $489.1 million reported in the same period a year ago. Similar to EPS estimates, the company has met or exceeded revenue expectations only once during the past four quarters.

The sustainability of the stock's recent price movement, based on these newly released figures and future earnings forecasts, will significantly depend on management's remarks during the earnings call.

Since the start of the year, ProFrac Holding Corp. shares have decreased by about 9.2%, while the S&P 500 has experienced a modest decline of 1.9%.

Future Prospects for ProFrac Holding Corp.

With ProFrac Holding Corp. showing underperformance relative to the market this year, investors are left pondering the future trajectory of the stock.

The answer to this question is complex; however, the company's earnings outlook serves as a valuable indicator. This includes not only the current consensus earnings expectations for upcoming quarters but also any recent changes to these forecasts.

Research indicates a strong connection between short-term stock movements and shifts in earnings estimate revisions. Investors can monitor these revisions themselves or use tools like the Zacks Rank, which has a reliable track record for interpreting earnings estimate trends.

Leading up to this earnings release, the revisions trend for ProFrac Holding Corp. has been unfavorable. While the direction and extent of estimate revisions might shift following the latest earnings report, they currently result in a Zacks Rank of #4 (Sell) for the stock, suggesting potential underperformance in the near future.

Analysts are particularly keen to see if the estimates for future quarters and the current fiscal year change in the coming days. The present consensus EPS estimate stands at -$0.27, with projected revenues of $467.19 million for the next quarter, and -$0.71 EPS alongside revenues of $2.08 billion for the current fiscal year.

It's important also to consider the industry outlook as it can greatly impact the stock's performance. According to the Zacks Industry Rank, the Alternative Energy - Other sector currently ranks in the top 33% of over 250 Zacks industries. Historical data shows that stocks in the top half of Zacks-ranked industries tend to outperform those in the bottom half by more than a two-to-one ratio.

In related news, Energy Vault Holdings, Inc. (NRGV), another company within the same sector, has yet to report results for the quarter ending December 2024, with an expected release date of March 17. Analysts anticipate that Energy Vault will report a loss of $0.14 per share, which represents a slight improvement of +6.7% compared to the previous year. The consensus EPS estimate has remained steady over the last month, while revenues for the company are projected at approximately $38.95 million, reflecting a steep decline of 67.1% from last year.

ProFrac, Earnings, Loss