The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Parker Drilling missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Parker Drilling logged revenue of $165.3 million. The four analysts polled by S&P Capital IQ foresaw sales of $173.0 million on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $176.6 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 $0.10. The six earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS of $0.09 for Q3 were 50% lower than the prior-year quarter's $0.18 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 38.6%, 540 basis points worse than the prior-year quarter. Operating margin was 15.2%, 820 basis points worse than the prior-year quarter. Net margin was 6.6%, 510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $171.0 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $698.1 million. The average EPS estimate is $0.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 647 members out of 670 rating the stock outperform, and 23 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Parker Drilling a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Parker Drilling is outperform, with an average price target of $7.38.
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