JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Shares of Innovex International (NYSE:INVX) surged 18% following the release of their robust fourth-quarter and full-year 2024 financial results. The company reported a significant 65% increase in quarterly revenue compared to the previous quarter, with revenue reaching $251 million. This performance also represents a notable improvement from the $133.19 million reported in the same quarter last year.
The oilfield services provider announced a net income of $32 million, translating to a net income margin of 13%. Adjusted EBITDA stood at $49 million, with a margin of 20%, indicating healthy profitability and operational efficiency. In comparison to the same period in the previous year, Innovex saw an increase in net income from $18.45 million and a consistent adjusted EBITDA margin year-over-year (YoY).
The company’s financial strength was further demonstrated by its free cash flow of $29 million and a return on capital employed (ROCE) of 12%. Innovex’s strategic moves, including the intended divestiture of the Dril-Quip Eldridge facility and the acquisition of Downhole Well Solutions (DWS), have been pivotal in driving growth and improving margins.
Innovex’s CEO, Adam Anderson, highlighted the company’s operational transformation and the early positive results, which have benefited both customers and shareholders. CFO Kendal Reed expressed satisfaction with the achievement of $30 million in annualized merger cost synergies ahead of schedule, emphasizing the company’s capital-light business model and its ability to convert a high proportion of EBITDA to free cash flow.
Looking ahead to the first quarter of 2025, Innovex expects total revenue to be between $245 million and $255 million, with Adjusted EBITDA projected to be in the range of $45 to $50 million. These forecasts account for market conditions such as a flat rig count environment and specific regional market weaknesses.
Today’s stock movement reflects the market’s positive reception to Innovex’s financial achievements and strategic initiatives, positioning the company favorably for the upcoming quarter.
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