Will CHX's Q4 2024 earnings trend continue into 2025?
3/31/2025 04:30pm
**ChampionX's Q4 2024 earnings trend is not likely to continue into 2025**. Here's why:
1. **Expected Earnings and Revenue**: For Q1 2025, ChampionX is estimated to report earnings per share (EPS) of $0.41, which is lower than the $0.50 reported in Q4 2024. Additionally, the estimated revenue for Q1 2025 is $874 million, while the actual revenue for Q4 2024 was $912 million. This indicates a potential decline in earnings and revenue compared to the previous quarter.
2. **Strategic Initiatives and Acquisition**: ChampionX is set to be acquired by Schlumberger Limited, which could impact its financial performance. The acquisition is expected to affect CHX's business operations and financial outlook.
3. **Market Conditions**: The oil and gas industry is expected to have a robust outlook, which could positively impact ChampionX's performance. However, this is not a guarantee that the Q4 trend will continue.
4. **Analyst Opinions**: Analysts have a mixed outlook on ChampionX, with some expecting the company to beat earnings estimates in Q1 2025, while others anticipate a decline in earnings and revenue.
In conclusion, while there are some positive indicators for ChampionX's future performance, the Q4 2024 earnings trend is not expected to continue into 2025 due to the acquisition, expected decline in earnings and revenue, and mixed analyst opinions.