CHX Earnings Prediction
The chart below shows how CHX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CHX sees a -1.04% change in stock price 10 days leading up to the earnings, and a +1.21% change 10 days following the report. On the earnings day itself, the stock moves by -0.59%. This data can give you a slight idea of what to expect for the next quarter's release.
CHX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
943.55M
-4.29%
0.40%
Gross Margin
29.91%
12.40%
-3.70%
Operating Margin
14.29%
18.39%
3.63%
Net Margin
8.28%
23.21%
-3.72%
EPS
0.39
18.18%
0.00%
No Data Available
CHX Earnings Analysis
ChampionX Corporation Corporation (CHX.O) Earnings Conference Call
Positive
- ChampionX achieved its highest level of performance in key financial metrics since the transformative merger in 2020, with significant growth in adjusted EBITDA margin, free cash flow generation, and returns to shareholders in 2023.
- Expanded adjusted EBITDA margin by 430 basis points, achieved adjusted EBITDA growth of 25% in 2023.
- Converted 53% of adjusted EBITDA to free cash flow and returned 83% of that free cash flow to shareholders.
- Generated over $400 million of free cash flow, up 71% from the previous year, and achieved a return on invested capital of 18%.
- Returned $343 million to shareholders in 2023, up 52% from 2022, demonstrating strong financial performance and commitment to value creation.
- The company displayed resilience and steady growth, particularly in the Production Chemical Technologies business, with sequential revenue growth in key regions and a commitment to innovation and technology-driven offerings.
- Production Chemical Technologies delivered high single-digit sequential revenue growth internationally.
- Achieved 6% sequential growth in international markets, led by the Middle East and Africa region.
- Displayed steady growth trajectory in North America, with steady increases in total fluids produced, chemical intensity, pricing, and market share.
- Showed growth in digital business, with a 16% year-over-year increase and a strong focus on production optimization and emissions technology offerings.
- ChampionX maintained strong financial position, continued earnings momentum, and laid a foundation for revenue and earnings growth, margin expansion, and robust free cash flow generation in 2024, amidst market uncertainties and evolving industry dynamics.
- Expressed confidence in 2024 as a growth year for ChampionX, both internationally and in North America, supported by production-oriented businesses benefitting from increased OpEx spend by upstream and midstream operators.
- Positioned the company to differentiate through technology and service excellence, capturing growth opportunities in favorable markets and protecting against downturns.
- Demonstrated commitment to returning capital to shareholders, increasing share repurchase authorization to $1.5 billion and raising regular cash dividend by 12% to reflect strong free cash flow generation capability.
Negative
- Q4 2023 revenue was flat sequentially, impacted by softer U.S. land drilling and completions-related activity at year-end holidays.
- Drilling Technologies segment revenue decreased 15% sequentially and 13% year-over-year due to the trend in U.S. land rig count and customer year-end activity slowdowns and destocking.
- Reservoir Chemical Technologies revenue declined 15% sequentially and 17% year-over-year, driven by the exit of certain low-margin product lines, impacting revenue but improving profit margins.
- Digital revenue was down 9% in the quarter and down 3% year-over-year as customers deferred purchases to optimize inventory and cash flows.
- International revenue declined 11% year-over-year primarily due to lower sales to a large customer in Latin America.
