Shares of NexTier Oilfield Solutions (NYSE: NEX) , an energy services company operating largely in the U.S. market, rose a dramatic 20% in the first few minutes of trading on Jan. 4. Roughly a half hour into the day the stock was still up 19%. The big story driving this advance was a news release that hit the market after the close on Jan. 3.
After the market closed yesterday NexTier Oilfield Solutions provided Wall Street with an update on its fourth-quarter performance. Investors clearly liked what they saw. Notably, the company is expecting revenue in the fourth quarter of 2021 to come in between $500 million and $510 million. That's a 25% increase over the third-quarter figure, largely driven by an acquisition. Reported earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to be between $75 million and $80 million in the quarter (including an $18 million asset sale), up from $27.8 million in the third quarter. It's not surprising that investors were pleased with this update.
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Why NexTier Oilfield Solutions Stock Rallied 20% at the Open Today