ChampionX (CHX) reported Q3 EPS of $0.33, in-line with the analyst estimate of $0.33. Revenue for the quarter came in at $1 billion versus the consensus estimate of $942.63 million.
Share Repurchase Program
ChampionX announces that the Board of Directors approved an increase to its share repurchase program (the “Share Repurchase Program”). Pursuant to such increase, ChampionX is authorized to repurchase up to $750 million of its outstanding common stock, which is an increase of $500 million to the original amount of the Share Repurchase Program previously announced on March 7, 2022. The increased share repurchase authority is effective immediately. ChampionX repurchased $80 million of its outstanding common stock during the third quarter of 2022, with a total of $100 million repurchased under the Share Repurchase Program this year.
“As we look to the fourth quarter, we see activity improving in international markets. We expect normal seasonality in our North American businesses into the year-end holidays, along with lower revenue in Reservoir Chemical Technologies due to having exited certain product lines as part of the restructuring efforts. We expect continued price increase realization, driving sequential adjusted EBITDA margin improvement. On a consolidated basis, in the fourth quarter, we expect revenue to be between $985 million and $1.015 billion. We expect adjusted EBITDA of $176 million to $184 million.
“We continue to see constructive demand tailwinds in our businesses that support a favorable multi-year outlook for our sector, and we are confident that we will continue to deliver solid bottom-line growth, adjusted EBITDA margin expansion and strong cash generation as this energy up-cycle progresses. We remain committed to creating value for our shareholders through a disciplined capital allocation framework, which includes high-return organic investment and returning cash to shareholders. Our differentiated technology and innovation capabilities uniquely position ChampionX to help our customers maximize the value of their producing assets in sustainable and cost-effective ways, and I am thankful to lead such a talented and motivated team.”