How did PTEN's Q3 2024 earnings surprise analysts?

Patterson-UTI Energy's (PTEN) Q3 2024 earnings fell short of analysts' expectations in terms of net income, despite exceeding expectations in total revenue and adjusted EBITDA.

1. **Net Income Miss**: PTEN reported a net loss of $978.33 million for Q3 2024, which was a significant deterioration from the year-ago quarter's net income of $0.05 million. This resulted in an EPS surprise of -0.01, indicating a substantial negative surprise relative to the consensus estimate.

|code|Ticker|Name|Date|Net Income|market_code|
|---|---|---|---|---|---|
|PTEN|PTEN.O|Patterson-UTI Energy|2023 Q4|6.1938E7|185|
|PTEN|PTEN.O|Patterson-UTI Energy|2024 Q1|5.1706E7|185|
|PTEN|PTEN.O|Patterson-UTI Energy|2024 Q2|1.1621E7|185|
|PTEN|PTEN.O|Patterson-UTI Energy|2024 Q3|-9.78334E8|185|

2. **Revenue and EBITDA Outperformance**: Despite the net income miss, PTEN's total revenue for the quarter was $1,357 million, surpassing the Zacks Consensus Estimate of $1,289 million. The company also reported an adjusted EBITDA of $275 million, excluding certain items.
3. **Segmental Performance**: The Completion Services segment contributed positively to the revenue outperformance, with a revenue of $832 million and an adjusted gross profit of $128 million. However, the Drilling Services and Other Services segments underperformed, contributing to the overall net loss.
4. **Return to Shareholders**: PTEN returned $71 million to shareholders in Q3, including $40 million spent on repurchasing over 4 million shares. Since the close of the NexTier merger and Ulterra acquisition, the company has returned $475 million to shareholders, including $346 million in share repurchases.

In conclusion, while PTEN's Q3 2024 earnings were negatively impacted by poor performance from certain segments and significant impairment charges, the company's total revenue and adjusted EBITDA exceeded expectations. The company's strategic integrations and focus on shareholder returns provide some positive points, but the substantial net loss due to goodwill impairment poses a significant challenge for PTEN moving forward.