- ChampionX ( NASDAQ: CHX ) stock surges 16% in afternoon trading on Wednesday after the oil & gas chemicals and solutions provider comfortably beat revenue estimates in Q3.
- CHX after the bell on Tuesday reported Q3 rev of $1.02B, which was $61.1M higher than Wall Street expectations.
- Q3 GAAP EPS was $0.11. On an adjusted basis, net income more than doubled to $67.8M during the quarter.
- Revenue breakdown: Production Chemicals tech $643.6M (+32% Y/Y), Productions and Automation tech $247.7M (+21.1% Y/Y), Drilling tech $61M (+23.5% Y/Y), Reservoir Chemical tech $35.5M (-7.1% Y/Y) and Corporate and other $33.8M (-13.3% Y/Y).
- CHX also increased its share buyback program to $750M from $500M.
- Looking into Q4, CHX sees improving activity in international markets, normal seasonality for its North American operations into the year-end holidays and lower revenue in its Reservoir Chemicals business.
- Expects Q4 revenue between $985M to $1.02B. The consensus revenue estimate is $958.90M.
- The company also sees Q4 Adj EBITDA of $176M - $184M.
- Year-to-date CHX has gained 20.9% on the Nasdaq.
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ChampionX stock rallies after revenue beat in Q3