Nuverra Environmental Solution (NES) Misses Q1 EPS by 3c, Comments on Outlook

Nuverra Environmental Solution (NYSE: NES) reported Q1 EPS of ($0.48), $0.03 worse than the analyst estimate of ($0.45). Revenue for the quarter came in at $128 million versus the consensus estimate of $116.93 million.

Business Outlook

Mr. Johnsrud provided commentary on the Company’s business outlook for 2014:

“Reiterating what we said last quarter, Nuverra’s growth strategy in 2014 is comprised of three key objectives: 1) increasing market share in existing basins by taking business from competitors; 2) growing organically by developing and introducing innovative new solutions to our service line mix; and 3) opportunistically expanding our service offerings by consolidating companies that complement our business. We remain focused on expanding our service offerings in each of our basins to address the full spectrum of environmental management needs of our customers.

“With the weather of the first quarter behind us, our customers are signaling an increase in E&P capital spending, growth in rig counts, and a rebound in permitting activity. These activities point to a significant increase in the volume of fluids and solids that must be managed at the surface. The anticipated increase in E&P spending, combined with an increasingly focused environmental regulatory landscape, give us confidence in our upbeat outlook for the year.

“As we progress through 2014, looking at the second quarter we are eyeing a gradual increase in activity levels, with particularly strong growth in the back half of the year. While this industry is very dynamic, logistical challenges are significant and it takes time to ramp up activity. We expect sequential improvement in the second quarter in terms of both revenues and margins, as well as a gradual resumption of drilling and completion activities that were delayed due to weather. We remain confident in our full-year 2014 plan, and believe the quarterly progression throughout the year will be back-end weighted.”

For earnings history and earnings-related data on Nuverra Environmental Solution (NES) click here.

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