The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Precision Drilling beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Gross margins contracted, operating margins expanded, net margins contracted.
Precision Drilling chalked up revenue of $535.7 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $500.7 million on the same basis. GAAP reported sales were 7.3% lower than the prior-year quarter's $577.8 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 $0.21. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. GAAP EPS were -$0.42 for Q4 versus $0.10 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 38.8%, 640 basis points worse than the prior-year quarter. Operating margin was 16.4%, 890 basis points better than the prior-year quarter. Net margin was -21.8%, 2,660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $594.3 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $2.11 billion. The average EPS estimate is $0.78.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,634 members out of 1,676 rating the stock outperform, and 42 members rating it underperform. Among 502 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 492 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 $10.13.
Is Precision Drilling the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Precision 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. The Motley Fool owns shares of Precision Drilling Trust. 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.