VAL Earnings Prediction
The chart below shows how VAL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VAL sees a +0.23% change in stock price 10 days leading up to the earnings, and a -0.49% change 10 days following the report. On the earnings day itself, the stock moves by +1.67%. This data can give you a slight idea of what to expect for the next quarter's release.
VAL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
643.10M
41.31%
5.41%
Gross Margin
--
--
--
Operating Margin
18.46%
491.67%
3.13%
Net Margin
9.78%
161.50%
-60.44%
EPS
0.88
417.65%
-56.65%
No Data Available
VAL Earnings Analysis
Valaris Limited Corporation (VAL.N) Earnings Conference Call
Positive
Free Cash Flow Improvement: 1. Strong Free Cash Flow Generation: Valaris generated $111 million of free cash flow during Q3 2024, reflecting improved cash flow profile compared to the first half of the year.
Adjusted EBITDA Increase: 2. Increased Adjusted EBITDA: Adjusted EBITDA rose to $150 million in Q3 2024, up from $139 million in the previous quarter, driven by strong operational performance.
Share Repurchase Program: 3. Significant Share Repurchases: The company repurchased $100 million of shares during the third quarter, totaling $300 million in share repurchases since the program's inception.
Fleet-Wide Revenue Efficiency: 4. High Revenue Efficiency: Valaris achieved fleet-wide revenue efficiency of 98% in Q3 2024, marking the third consecutive quarter of at least 97% efficiency.
Strong Contract Demand: 5. Robust Contract Backlog: Valaris secured new contracts and extensions totaling approximately $257 million in contract backlog, primarily for its jackup fleet, indicating strong demand in the market.
Negative
Revenue Decline Forecast: 1. Declining Revenue Guidance: Valaris expects total revenues in Q4 2024 to decrease to a range of $570 million to $590 million, down from $643 million in Q3 2024, primarily due to lower utilization of the floater fleet.
Declining EBITDA Forecast: 2. Lower Adjusted EBITDA Forecast: The company anticipates adjusted EBITDA for Q4 2024 to be between $135 million and $155 million, a decline from $150 million in Q3 2024, indicating a downward trend in profitability.
Idle Rig Impact: 3. Increased Idle Rigs: The DPS-5 and DS-10 rigs are expected to be idle in Q4 2024, contributing to lower overall utilization and revenue generation for the company.
Deferred Customer Demand Decline: 4. Deferred Customer Demand: There has been a year-over-year decline in the pace of contracting, with a significant amount of customer demand being deferred into 2026 due to various operational delays.
Operating Cost Challenges: 5. Rising Operating Costs: The company is facing increased costs associated with warm stacking rigs, which could lead to additional financial strain if not managed effectively.
VAL FAQs
How does VAL typically perform around its earnings report dates?
Is Valaris Limited (VAL) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
VAL Earning Call Sentiment
Valaris Limited (VAL) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VAL.N
-2.54%Positive
The earnings call presents a mixed picture. Financial performance shows improvement with increased revenue and EBITDA, and a strong share repurchase program is positive. However, reduced full-year EBITDA guidance and deferred customer demand due to regulatory and supply chain challenges suggest caution. The Q&A reveals some uncertainties, particularly around rig activation timelines. Overall, the positive financials are offset by operational and market risks, leading to a neutral sentiment.
