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In a challenging market environment, Helix Energy Solutions Group Inc . (NYSE:HLX) stock has touched a 52-week low, dipping to $8.64. The energy sector has faced significant headwinds, and Helix Energy, a well-known name in offshore energy services, has not been immune to these pressures. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.29, while analysts have set price targets ranging from $12.50 to $15.00, suggesting potential upside. Over the past year, the company's stock has seen a decline of 11.62%, reflecting broader industry trends and investor sentiment. This latest price level represents a critical juncture for the company as it navigates through the volatile energy market and aims to regain its footing in the coming quarters. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with 8 additional exclusive ProTips available to subscribers, offering deeper insights into the company's financial health and growth prospects.
In other recent news, Helix Energy Solutions Group, Inc. has unveiled its third-quarter financial results, demonstrating resilience amidst operational challenges. The company reported Q3 revenues of $342 million, a gross profit of $66 million, and a net income of $29.5 million. Despite weather-related setbacks and deferred revenues, Helix managed to secure significant new contracts and subsequently raised its free cash flow guidance for the year.
Recent developments include Helix's revision of its 2024 revenue guidance to a range of $1.3 billion to $1.365 billion and an adjusted EBITDA to $280 million to $310 million. The company's free cash flow guidance for 2024 has also been increased to $120 million to $150 million. Helix's liquidity remains robust with $324 million in cash and equivalents and total liquidity of $399 million.
In terms of future expectations, the company anticipates its free cash flow to exceed $200 million next year, with capital expenditure projected to remain at $70 million to $80 million annually. Analysts noted that Helix's new long-term contracts with Petrobras and Shell (LON:SHEL) have created a backlog exceeding $800 million, indicating potential growth. However, investors should be aware that seasonal weather in the Northern Hemisphere may impact Q4 results.
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