2023-07-24 17:32:56 ET
ChampionX ( NASDAQ: CHX ) -3% post-market Monday after beating Q2 adjusted earnings estimates but missing on revenues and guiding Q3 revenues below consensus.
Q2 net income jumped 250% Y/Y and 51% Q/Q to $95.8M and adjusted EBITDA gained 35% Y/Y and 6% Q/Q to $186.2M, but revenues fell 0.6% Y/Y and 2.3% Q/Q to $926.6M, impacted by shipment delays in Latin America due to customer logistics, Canadian wildfires and extended production platform turnarounds in the Gulf of Mexico.
ChampionX ( CHX ) issued downside guidance for Q3, seeing revenues of $960M-$990M compared to $1.01B analyst consensus estimate.
ChampionX ( CHX ) said it expects an increase in its international business and continued positive momentum in North American production-oriented businesses, and that it has begun to see good volume pick-up in July as the factors which weighed on Q2 volumes resolve.
"Our cash generation remains strong, and for the full year, we still expect to convert at least 50% of our adjusted EBITDA to free cash flow, and we remain committed to returning at least 60% of our free cash flow to our shareholders for the year," the company said.
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ChampionX slips as Q3 revenue guidance misses expectations