What drove the quarter
- Canadian activity mix - Higher rig activity in Canada, especially in heavy oil drilling and well servicing, drove revenue growth but was offset by lower upfront capital payments and a shift toward more Super Single rigs
- U.S. reactivation costs - Revenue growth in the U.S. was driven by higher rig utilization and day rates, but margins declined due to increased rig reactivation costs
- International margins - Lower international margins resulted from a change in rig mix and geopolitical tensions
Key reported figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Revenue | Beat | C$452.8 mln | C$435.27 mln (7 Analysts) |
| Q2 Net Loss | | C$893,000 | |
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the oil & gas drilling peer group is "buy"
- Wall Street's median 12-month price target for Precision Drilling Corp (Calgary) is C$150.00, about 35.5% above its July 28 closing price of C$110.68
- The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 16 three months ago
Quarterly results beat revenue estimates
PDS•
