Liberty Energy reported earnings for Q1 that crushed Wall Street's expectations.
The company also reported Q1 sales that beat Wall Street's forecast.
Management's forward guidance suggests that performance should continue improving as the year progresses.
Liberty Energy (NYSE: LBRT) stock had enjoyed a banner rally this week. In a week that played host to a 0.5% gain for the S&P 500 index, Liberty stock roared 24.5% higher.
Liberty published its first-quarter results after the market closed on April 22, posting sales and earnings for the period that topped Wall Street's expectations. The company also issued promising forward guidance, paving the way for a big stock rally.
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Thanks to bullish momentum for the broader market, Liberty was already heading into its Q1 report on a hot streak -- and its earnings release helped power a sustained rally. The company reported non-GAAP (adjusted) earnings per share of $0.06 in the period, crushing the average Wall Street analyst estimate's call for a loss of $0.14 in the period. Meanwhile, sales of $1.02 billion in the quarter were up 4.4% year over year and beat the consensus estimate by roughly $61.2 million.
Following its better-than-expected Q1 performance, Liberty is guiding for even stronger results in Q2. Management guided for high-single-digit revenue growth in the period in conjunction with increased utilization and also said to expect corresponding increases in profitability. The company also said that positive impacts from pricing cadence should start to pick up in the back half of the year.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.