Precision Drilling Misses on Both Revenue and Earnings

Seth Jayson, The Motley Fool
Updated

Precision Drilling (NYS: PDS) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Precision Drilling missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.


Margins expanded across the board.

Revenue details
Precision Drilling logged revenue of $641.4 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $653.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $540.9 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.39. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.39 for Q1 were 63% higher than the prior-year quarter's $0.24 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.3%, 220 basis points better than the prior-year quarter. Operating margin was 26.7%, 330 basis points better than the prior-year quarter. Net margin was 17.4%, 490 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $406.4 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $1.22.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,656 members out of 1,697 rating the stock outperform, and 41 members rating it underperform. Among 491 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 481 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 $14.63.

How did Precision Drilling treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe another spike may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.

At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement