The 10-second takeaway
For the quarter ended March 31 (Q1), Pioneer Drilling beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Margins grew across the board.
Pioneer Drilling logged revenue of $232.0 million. The four analysts polled by S&P Capital IQ anticipated sales of $211.0 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $153.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.24. The seven earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS were $0.23 for Q1 against -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.9%, 460 basis points better than the prior-year quarter. Operating margin was 13.3%, 940 basis points better than the prior-year quarter. Net margin was 6.1%, 1,000 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $229.7 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $941.9 million. The average EPS estimate is $0.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 598 members out of 624 rating the stock outperform, and 26 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Pioneer Drilling a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pioneer Drilling is outperform, with an average price target of $13.19.
Over the decades, small-cap stocks, like Pioneer Drilling have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Pioneer Drilling to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.