The 10-second takeaway
For the quarter ended March 31 (Q1), Precision Drilling met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Precision Drilling logged revenue of $585.7 million. The 12 analysts polled by S&P Capital IQ foresaw sales of $590.0 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $641.4 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 $0.32. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. GAAP EPS of $0.32 for Q1 were 18% lower than the prior-year quarter's $0.39 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 42.6%, 170 basis points worse than the prior-year quarter. Operating margin was 21.9%, 480 basis points worse than the prior-year quarter. Net margin was 15.7%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $383.9 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $2.04 billion. The average EPS estimate is $0.73.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,623 members out of 1,665 rating the stock outperform, and 42 members rating it underperform. Among 436 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 425 give Precision Drilling a green thumbs-up, and 11 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 $9.72.
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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 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.