U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
KLX Energy Services Holdings Inc. (NASDAQ:KLXE) stock has reached a 52-week low, dipping to $3.75, representing a steep 14% decline in the past week alone. According to InvestingPro data, the company’s market capitalization has contracted to $63.6 million as it faces a tumultuous market environment. This latest price point underscores a significant downturn for the energy services provider, which has seen its stock value decrease by 47% over the past year, while revenue declined by 20%. Investors are closely monitoring KLXE as it navigates through industry headwinds, with the current low presenting potential risks and opportunities within the energy sector. The company maintains a healthy current ratio of 1.66, indicating sufficient liquidity to meet short-term obligations. The 52-week low serves as a critical indicator for the company’s performance and market sentiment, as stakeholders consider the long-term implications of this valuation on their investment decisions. InvestingPro analysis suggests the stock is currently undervalued, with additional insights and 6 more ProTips available to subscribers through the comprehensive Pro Research Report.
In other recent news, KLX Energy Services Holdings Inc. reported its financial results for the fourth quarter of 2024, revealing that revenue fell short of expectations at $165.5 million compared to the projected $173.65 million. Despite this shortfall, the company met earnings per share (EPS) forecasts with a reported EPS of -0.8. For the full year 2024, KLX Energy generated revenue of $709 million and achieved an adjusted EBITDA of $90 million, reflecting a 13% margin. In a strategic move, the company expanded its at-the-market (ATM) stock offering program by $25 million, raising the total potential offering size to approximately $57.75 million. This expansion aims to raise additional capital through the sale of common stock. KLX Energy has also focused on cost control, reducing SG&A expenses by 8% year-over-year. Analyst discussions during the earnings call highlighted the company’s margin improvement strategies and its potential in gas basins like Haynesville. Looking ahead, KLX Energy projects revenue to remain flat or slightly increase in 2025, with a focus on strategic capital allocation and potential mergers and acquisitions.
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