Source Energy Services Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags

Source Energy Services (TSE:SHLE) Full Year 2024 Results

Key Financial Results

• Revenue: CA$674.0m (up 18% from FY 2023).
• Net income: CA$9.51m (down 94% from FY 2023).
• Profit margin: 1.4% (down from 29% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: CA$0.70 (down from CA$12.36 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Source Energy Services Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) missed analyst estimates by 52%.

The primary driver behind last 12 months revenue was the Canada segment contributing a total revenue of CA$671.0m (100% of total revenue). Notably, cost of sales worth CA$546.6m amounted to 81% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CA$60.3m (51% of total expenses). Explore how SHLE's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 5.0% growth forecast for the Energy Services industry in Canada.

Performance of the Canadian Energy Services industry.

The company's shares are down 16% from a week ago.

Risk Analysis

Be aware that Source Energy Services is showing 2 warning signs in our investment analysis and 1 of those doesn't sit too well with us...

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