STEP Energy Services Ltd. (NASDAQ:STEP) Q1 2025 Financial Results Preview

• Oppenheimer maintains an "Outperform" rating with a price target of $67, indicating a potential increase of about 43.25%.
• STEP reported a revenue of $339 million in the most recent quarter.
• The company's asset turnover ratio is approximately 0.27, highlighting its efficiency in using assets to generate revenue.

STEP Energy Services Ltd., trading under the symbol NASDAQ:STEP, is preparing to release its first quarter 2025 financial results. This announcement is crucial for investors and stakeholders as it will shed light on the company's financial health and strategic plans. The company is known for its services in the energy sector, competing with other major players in the industry.

On April 16, 2025, Oppenheimer maintained its "Outperform" rating for STEP, with Chris Kotowski setting a price target of $67. At the time, the stock was priced at $46.77, suggesting a potential increase of about 43.25%. This adjustment from a previous target of $85 reflects a more conservative outlook on the stock's future performance.

STEP reported a revenue of $339 million in the most recent quarter. The cost of revenue was $168.6 million, leading to a gross profit of $170.5 million. However, with operating expenses at $529.5 million, the company faces challenges in achieving profitability from its core operations.

STEP's asset turnover ratio stands at approximately 0.27, indicating the company's efficiency in using its assets to generate revenue. The net value of its property, plant, and equipment is $90.6 million, highlighting the company's investment in its operational infrastructure. These metrics are essential for understanding STEP's operational efficiency and financial health.

As STEP prepares to discuss its financial results, investors will be keen to see how the company plans to address its current challenges. The upcoming conference call will provide an opportunity for stakeholders to gain insights into the company's strategic direction and future prospects.