The 10-second takeaway
For the quarter ended June 30 (Q2), Precision Drilling met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share didn't change.
Gross margins dropped, operating margins dropped, net margins were steady.
Precision Drilling booked revenue of $374.5 million. The nine analysts polled by S&P Capital IQ looked for revenue of $374.1 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $358.0 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 $0.06. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.06 were the same as 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 32.1%, 340 basis points worse than the prior-year quarter. Operating margin was 8.0%, 360 basis points worse than the prior-year quarter. Net margin was 4.8%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $559.7 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.15 billion. The average EPS estimate is $1.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,654 members out of 1,698 rating the stock outperform, and 44 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 436 give Precision Drilling a green thumbs-up, and 12 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 $11.63.
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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. The Motley Fool owns shares of Precision Drilling. 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.