ProFrac (NASDAQ:ACDC) Shares Down 14.1% Following Weak Earnings

Key Points

• Shares dropped 14.1% intraday to as low as $6.17 after ProFrac reported Q earnings of ($0.46) per share, missing the ($0.37) consensus by $0.09 even as revenue beat at $449.6M versus $426.4M expected.
• The company remains unprofitable with a negative net margin (-18.97%) and negative ROE (-33.18%), and shows tight liquidity (current ratio 0.81, quick ratio 0.56) with a debt/equity of 1.08.
• Analyst sentiment is mixed-to-negative — MarketBeat's consensus is "Reduce" with an average price target of $5.83, amid recent ratings ranging from UBS "positive" to Morgan Stanley "underweight" (PT $6).

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) fell 14.1% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $6.17 and last traded at $6.1230. 526,519 shares traded hands during trading, a decline of 60% from the average session volume of 1,320,850 shares. The stock had previously closed at $7.13.

The company reported ($0.46) earnings per share for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.09). The company had revenue of $449.60 million during the quarter, compared to analysts' expectations of $426.39 million. ProFrac had a negative net margin of 18.97% and a negative return on equity of 33.18%.

Analyst Ratings Changes

Several research firms recently weighed in on ACDC. UBS Group reiterated a "positive" rating on shares of ProFrac in a report on Thursday, March 12th. Wall Street Zen upgraded shares of ProFrac from a "sell" rating to a "hold" rating in a research note on Saturday, April 4th. Weiss Ratings restated a "sell (d-)" rating on shares of ProFrac in a research note on Friday, March 27th. Zacks Research upgraded shares of ProFrac from a "strong sell" rating to a "hold" rating in a research note on Wednesday, January 21st. Finally, Morgan Stanley boosted their price target on shares of ProFrac from $5.00 to $6.00 and gave the stock an "underweight" rating in a research note on Wednesday, April 15th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, ProFrac has a consensus rating of "Reduce" and an average price target of $5.83.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC grew its position in shares of ProFrac by 7,241.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock valued at $27,000 after purchasing an additional 3,476 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in ProFrac during the second quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in ProFrac during the third quarter worth approximately $45,000. Price T Rowe Associates Inc. MD acquired a new stake in ProFrac during the fourth quarter worth approximately $46,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in ProFrac during the fourth quarter worth approximately $47,000. 12.75% of the stock is currently owned by institutional investors and hedge funds.

ProFrac Stock Performance

The company has a market cap of $1.14 billion, a price-to-earnings ratio of -2.88 and a beta of 1.51. The stock's fifty day simple moving average is $6.23 and its two-hundred day simple moving average is $5.06. The company has a debt-to-equity ratio of 1.08, a quick ratio of 0.56 and a current ratio of 0.81.

ProFrac Company Profile

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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