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KLX Energy Services (NASDAQ:KLXE) +34% in Wednesday’s trading after the drilling and well services contractor raised its Q3 revenue projections, now expecting 16%-18% Q/Q growth compared with prior guidance of 9%-13% sequential growth.
The company also increased its guidance for adjusted EBITDA margin to 14%-16% from its previous outlook of 10%-12%, and reaffirmed prior guidance of returning to positive free cash flow in H2 2022.
KLX Energy (KLXE) also said it extended the maturity date of its asset-based credit agreement by a year to September 15, 2024.
“Through realized synergies, re-alignment of our deployed assets, and the push towards normalized pricing for our services, we are on pace to deliver our best pro forma quarterly performance since 2019,” President and CEO Chris Baker said.
KLX Energy’s (KLXE) “balance sheet has a negative book value and Altman Z score, indicating a troubled financial position,” Fade The Market writes in a bearish analysis published on Seeking Alpha.
Image and article originally from seekingalpha.com. Read the original article here.