The 10-second takeaway
For the quarter ended March 31 (Q1), Precision Drilling missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
Precision Drilling logged revenue of $641.4 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $653.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $540.9 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 $0.39. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.39 for Q1 were 63% higher than the prior-year quarter's $0.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.3%, 220 basis points better than the prior-year quarter. Operating margin was 26.7%, 330 basis points better than the prior-year quarter. Net margin was 17.4%, 490 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $406.4 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $1.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,656 members out of 1,697 rating the stock outperform, and 41 members rating it underperform. Among 491 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 481 give Precision Drilling a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Precision Drilling is outperform, with an average price target of $14.63.
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