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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