Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.
The stock price of Liberty Oilfield Services (NYSE: LBRT) dropped 12% today following missed Q3 earnings expectations. Even in the midst of a promising acquisition, Liberty stock felt the full force of investors unimpressed with the companies quarterly growth.
The Q3 report was one that seems more and more familiar as companies collectively struggle with supply chain problems. Liberty Oilfield missed expected earnings and was hit with a range of unexpected costs – $12 million on logistics and $8 million above normal for maintenance costs.
The provider of hydraulic fracturing and wireline services hasn’t exactly relished the limited global oil supply, showing a $0.22 loss per share in the recent report. It isn’t all negative for Liberty, their recent acquisition of PropX for $90 million should start to improve the operational and logistical efficiency of the company, and hence there is certainly an opportunity for Liberty to improve on the next quarter’s results.
At the time of writing, Liberty Oilfield Services stock is down 11.6% as of Tuesday’s closing price of around $15.50, currently trading at $13.72. Amidst current difficulty, the company is still recording an annual growth of 75% with plenty more room to the upside should results from the PropX acquisition start to take effect, and supply issues start to ease. Generally, 2021 has been a strong year for oil companies – with Marathon Oil showing annual gains of over 100%.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .