INVX Earnings Prediction
The chart below shows how INVX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, INVX sees a +0.19% change in stock price 10 days leading up to the earnings, and a +3.60% change 10 days following the report. On the earnings day itself, the stock moves by +0.48%. This data can give you a slight idea of what to expect for the next quarter's release.
INVX Key Earning Data
2024/Q4
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INVX Earnings Analysis
Innovex Downhole Solutions Inc Corporation (INVX.N) Earnings Conference Call
Positive
Revenue Increase from Merger: Innovex reported a 19% year-over-year increase in full year 2024 revenue, reaching $661 million, driven primarily by the merger with Dril-Quip.
Q4 Revenue Surge: Fourth quarter revenue surged to $251 million, marking an 89% year-over-year increase and a 65% sequential increase, largely due to the Dril-Quip and DWS acquisitions.
Cost Savings from Merger: The company achieved $30 million in annualized cost savings from the merger with Dril-Quip, demonstrating effective integration and cost management.
Q4 2024 Adjusted EBITDA Growth: Adjusted EBITDA for Q4 2024 was approximately $49 million, reflecting a $22 million sequential increase and a $17 million year-over-year increase, indicating strong operational performance post-merger.
Free Cash Flow Increase: Free cash flow for Q4 2024 was $29 million, a sequential increase of $9 million, showcasing improved operating performance and effective cash management.
Strong Balance Sheet Position: Innovex maintained a strong balance sheet with total debt of $35 million and $73 million in cash and equivalents, resulting in a net cash position of approximately $38 million at year-end.
ROCE Improvement: The company’s return on capital employed (ROCE) improved to 12% for the 12 months ended December 31, 2024, up from 9% in the previous quarter, indicating enhanced capital efficiency.
Market Share Increase: Innovex's market share in the cementing tool product line increased by 100 basis points in 2024 to 28%, reflecting continued gains in market presence.
Acquisition Benefits and Market Access: The acquisition of Downhole Well Solutions (DWS) is expected to provide significant revenue synergies and access to new markets, with DWS products operating on 38% of all U.S. land rigs at the time of acquisition.
Share Repurchase Program: The company announced a $100 million share repurchase program, providing a new avenue for shareholder returns and demonstrating confidence in its financial position.
Negative
Land Revenue Decline: Q4 NAM land revenue decreased by 6% compared to 2023, reflecting a decline in the US land rig count.
International Revenue Decline: International and offshore revenue declined by 5% from 2023, primarily due to a slowdown in the legacy Dril-Quip business.
On-Time Delivery Issues: The historical on-time delivery rate of Dril-Quip was deemed unacceptable, impacting market share and margins.
ERP System Integration Challenges: The integration of Dril-Quip's ERP system is expected to take time, potentially leading to short-term challenges and delays in order fulfillment.
Facility Efficiency Challenges: The facility footprint of Dril-Quip was inefficient and expensive to operate, necessitating divestitures and consolidations that may disrupt operations in the short term.
INVX FAQs
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INVX Earning Call Sentiment
Innovex Downhole Solutions Inc (NYSE:INVX) Q4 2024 Earnings Call Transcript
INVX.N
-1.68%Positive
Innovex's earnings call highlights strong financial performance with significant revenue growth and improved EBITDA, driven by successful mergers. The authorized $100 million share repurchase program is a positive signal for shareholder returns. Despite integration risks, management's optimism about technology advancements and facility sales, along with a capital-light model and improved ROCE, suggests a positive outlook. The market reaction is likely to be positive, with potential gains in the 2% to 8% range.
