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ACDC Nasdaq· ProFrac Holding Corp
Earnings report Q3 2023

ACDC Reports Decrease in Revenue for Q3 2023

Segments of Revenue

ACDC's revenue for the third quarter of 2023 was $574.2 million, representing a decrease of $122.5 million compared to the same period in 2022 and a decrease of $135.0 million from the second quarter of 2023. The company's revenue for the nine months ended September 30, 2023, was $2,140.9 million, showing an increase of $509.4 million from the same period in 2022.

The breakdown of revenue by segment is as follows:

  • Stimulation services: $489.5 million
  • Proppant production: $98.4 million
  • Manufacturing: $43.8 million
  • Other: $48.6 million
  • Eliminations: ($106.1 million)

Strengths

ACDC's stimulation services segment experienced a decrease in revenue of $179.1 million for the third quarter of 2023 compared to the same period in 2022. This decline can be attributed to a decrease in average active fleets and lower fleet utilization. However, the company's overall revenue for the nine months ended September 30, 2023, increased by $509.4 million compared to the same period in 2022, indicating strength in other segments.

Challenges

ACDC faced a decrease in consolidated net income for the three months ended September 30, 2023, with a loss of $17.9 million. This represents a decrease of $157.2 million from the same period in 2022. Additionally, the company's consolidated net income for the nine months ended September 30, 2023, decreased by $189.4 million compared to the same period in 2022. These financial challenges indicate a need for improvement in profitability.

Noteworthy

ACDC's revenue for the third quarter of 2023 showed a significant decrease compared to the same period in 2022 and the second quarter of 2023. This decline in revenue may be attributed to various factors, including a decrease in average active fleets and lower fleet utilization in the stimulation services segment. However, the company's revenue for the nine months ended September 30, 2023, increased by $509.4 million compared to the same period in 2022, indicating potential growth opportunities in other segments.

Summary

ACDC reported a decrease in revenue for the third quarter of 2023, primarily driven by a decline in the stimulation services segment. The company faced challenges in terms of consolidated net income, with a loss of $17.9 million for the quarter. However, ACDC showed strength in other segments, as evidenced by the overall increase in revenue for the nine months ended September 30, 2023. The company should focus on improving profitability and addressing the challenges faced in order to drive future growth and financial performance.

Source documents

Form 10-Q  filed on Nov 09, 2023
6 pages scanned

Reference data

Company financials Q3 revenue 697M
Analyst estimates Q3 EPS beat by 30.06%
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