H.C. Wainwright Reiterates Buy Rating on Newpark Resources (NR)

H.C. Wainwright analyst Amit Dayal reiterated a Buy rating and $12.00 price target on Newpark Resources (NYSE: NR).

The analyst commented: "Newpark Resources reported its 3Q24 results on November 7. Total revenues during the quarter were $44.2M, lower compared to the Industrial Solutions segment revenues of $57.3M in 3Q23. Please note that the historical amounts in the adjacent table do not reflect the proforma numbers after the divestiture of the company’s Fluid Systems segment. Gross profit for the quarter was $12.1M, or 27.5% of revenues. Operating income during the quarter was $1.2M, compared to $6.3M from the Industrial Solutions segment in the same period last year. Adjusted EBITDA for the quarter was $7.5M, or 17.0% of revenues, compared to $19.7M, or 34.4% of Industrial Solutions’ revenues in 3Q23. Net income from continuing operations was $14.9M, or $0.17 per diluted share in 3Q24, compared to $2.7M, or $0.03 per diluted share during 3Q23. The 3Q24 net income included a one-time benefit of $14.6M, primarily reflecting the release of valuation allowances on the company’s U.S. net operating losses (NOLs) and other tax credit carry-forwards following the sale of the Fluids Systems business. As a reminder, the company has approximately $28M in Federal NOLs on its books. Newpark had cash and cash equivalents of approximately $43M as of September 30, 2024. Reiterate Buy rating and $12 PT."

For an analyst ratings summary and ratings history on Newpark Resources click here. For more ratings news on Newpark Resources click here.

Shares of Newpark Resources closed at $7.28 yesterday.

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