Patterson-UTI (PTEN) Up 9.6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Patterson-UTI (PTEN). Shares have added about 9.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Patterson-UTI due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Patterson-UTI Energy, Inc. before we dive into how investors and analysts have reacted as of late.Patterson-UTI Energy Q1 Earnings & Revenues Beat EstimatesPatterson-UTI Energy reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. However, the bottom line decreased from the year-ago quarter's breakeven result due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments.Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%. This was driven by higher-than-expected revenues from the Drilling Services and Completion Services segments. The Drilling Services and Completion Services segments reported revenues of $351.7 million and $679.6 million, which beat the consensus mark of $350 million and $37.1 million, respectively. However, the top line decreased about 12.8% year over year. This underperformance can be attributed to the decrease in year-over-year segment revenues.PTEN’s board of directors declared a quarterly dividend of 10 cents per share, payable on June 15, 2026, to its common shareholders of record as of June 1.Q1 Segmental PerformancesDrilling Services: Revenues in this segment totaled $351.7 million, down 14.8% from the prior-year quarter’s figure of $412.9 million, but beat our estimate of $350 million.Operating income amounted to $44.3 million compared with $76.3 million in the first quarter of 2025. The figure beat our operating income estimate of $37.1 million.Completion Services: This segment’s revenues of $679.6 million decreased about 11.3% from the year-ago quarter’s figure of $766.1 million. However, the metric beat our estimate of $644 million.Operating loss totaled $20.7 million compared with a loss of $18.8 million in the first quarter of 2025 and was narrower than our estimate of $22.7 million.Drilling Products: This segment’s revenues of $79.8 million decreased about 6.8% from the year-ago quarter’s figure of $85.7 million and missed our estimate of $82 million.Operating profit totaled $5.1 million, compared with a profit of $6.7 million in the first quarter of 2025. The number also beat our operating profit estimate of $1.4 million.Other Services: Revenues amounted to $6.2 million, down almost 61% from the year-ago quarter’s figure of $15.9 million, but beat our estimate of $4.8 million.Operating profit amounted to $2.1 million against a profit of $0.2 million in the first quarter of 2025. The number also beat our estimate of an operating loss of $1 million.Capital Expenditure & Financial PositionIn the reported quarter, PTEN spent $116.6 million on capital programs compared with $161.8 million in the prior-year period.As of March 31, 2026, the company had cash and cash equivalents worth $337.2 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.8%.The company reported total operating costs and expenses of $1131.6 million compared with $1263.6 million in the first quarter of 2025.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.The consensus estimate has shifted 14.15% due to these changes.VGM ScoresCurrently, Patterson-UTI has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Patterson-UTI has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks