PDS Earnings Prediction
The chart below shows how PDS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PDS sees a +2.68% change in stock price 10 days leading up to the earnings, and a +1.53% change 10 days following the report. On the earnings day itself, the stock moves by -0.21%. This data can give you a slight idea of what to expect for the next quarter's release.
PDS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
477.15M
6.80%
11.17%
Gross Margin
18.99%
-0.84%
16.43%
Operating Margin
14.12%
52.48%
46.78%
Net Margin
8.21%
85.33%
70.33%
EPS
2.31
59.31%
60.42%
No Data Available
PDS Earnings Analysis
Precision Drilling Corporation Corporation (PDS.N) Earnings Conference Call
Positive
Revenue Surge: 1. Strong Revenue Growth: Precision Drilling reported a year-over-year increase in revenue, contributing to a robust financial performance in Q3 2024.
Adjusted EBITDA Achievement: 2. Significant Adjusted EBITDA: The company achieved an adjusted EBITDA of CAD142 million, reflecting strong operational efficiency and profitability.
Net Earnings Stability: 3. Net Earnings Consistency: Precision reported net earnings of CAD39 million or CAD2.77 per share, marking the ninth consecutive quarter of positive earnings.
Debt Reduction Achievements: 4. Debt Reduction Progress: The company successfully reduced its debt by CAD49 million in the quarter and CAD152 million year-to-date, reaching the low end of its 2024 target range.
Shareholder Return Strategy: 5. Increased Shareholder Returns: Precision executed CAD17 million in share repurchases during the quarter, aligning with its strategy to allocate 25% to 35% of free cash flow to shareholders.
Negative
U.S. Drilling Activity Decline: 1. Declining U.S. Drilling Activity: Precision averaged 35 rigs in the U.S. during Q3, a decrease of one rig from the previous quarter, indicating a stagnation in U.S. market activity.
Decline in Day Rates: 2. Decreased International Day Rates: International average day rates fell to CAD 47,223, an 8% decrease from the prior year, attributed to 44 non-billable utilization days for a rig undergoing certification.
U.S. Operating Margin Decline: 3. Lower Margins in U.S. Operations: Daily operating margins in the U.S. were reported at CAD 10,888, remaining flat from Q2, with expectations for a slight decrease to approximately CAD 9,500 in Q4.
Share-Based Compensation Charges: 4. Increased Share-Based Compensation: Share-based compensation charges for the year are expected to range between CAD 40 million and CAD 60 million, which may increase or decrease by up to CAD 20 million based on share price performance.
High Leverage Position: 5. High Debt Levels: As of September 30, Precision's long-term debt position net of cash was approximately CAD 775 million, with a net debt to trailing 12-month adjusted EBITDA ratio of approximately 1.4 times, indicating a significant leverage position.
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PDS Earning Call Sentiment
Precision Drilling Corporation (PDS) Q3 2024 Earnings Conference Call Transcript
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00:00
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PDS.N
-7.59%Positive
The earnings call reveals strong financial performance, with revenue and EBITDA growth, solid cash flow, and debt reduction. The company is well-positioned with new contracts and a focus on shareholder returns. Despite some vagueness in management responses, the overall sentiment is positive, supported by operational efficiency and market demand. The market cap suggests a moderate reaction, leading to a positive prediction.
