Championx Corp Down 10.49% To $30.22 After Earnings Miss

Wednesday, October 25, 2023 - Championx Corp (CHX) reported downside earnings and revenues today.

Analyst expectations for Championx Corp earnings per share (EPS) were at $0.50, with the company missing those estimates with a reported EPS of $0.41, leading to a negative surprise of $0.09 per share (-18%). Championx Corp's earnings rose 24% year-over-year as the firm reported an EPS of $0.33 in its year-ago quarter. The positive annual growth shows the Energy company is performing well amid recent economic conditions.

Analyst projections for Championx Corp revenue came in at a consensus of $974.1 million. Third-Quarter revenues missed estimates for $939.8 million by $34.3 million (4%). The company achieved negative 8% growth year-over-year compared to the firm's revenue of $1 billion from the year-ago quarter. The higher earnings growth relative to revenue signals Championx Corp has improved its profit margin.

The stock is down 10.49% to $30.22 after the report.

Despite Championx Corp reporting a decline in revenues, earnings increased signaling a rise in profit margins.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Championx Corp a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 70. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

ChampionX Corp helps companies drill for and produce oil and gas safely and efficiently. The company operates in four segments: Production Chemical Technologies, which offers products and services that cover a broad range of onshore and offshore chemical solutions in production and midstream operations; Production & Automation Technologies offers artificial lift equipment, end-to-end automation, and digital solutions, as well as other production equipment, it also offers automation and optimization hardware and software; Drilling Technologies includes polycrystalline diamond cutter (PDC) inserts, bearings, valves, and mining tools; and Reservoir Chemical Technologies. The Chemical & Automation segments both generate the majority of the revenue for the company.