Precision Drilling (PDS) Misses Q4 Earnings and Revenue Estimates

Core Viewpoint - Precision Drilling reported quarterly earnings of $0.76 per share, significantly missing the Zacks Consensus Estimate of $1.40 per share, and down from $3.45 per share a year ago, indicating a -45.71% earnings surprise [1][2] Financial Performance - The company posted revenues of $334.62 million for the quarter ended December 2024, which was 1.70% below the Zacks Consensus Estimate and down from $372.34 million year-over-year [2] - Over the last four quarters, Precision Drilling has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - Precision Drilling shares have declined approximately 6.7% since the beginning of the year, contrasting with the S&P 500's gain of 3.2% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.91 on revenues of $367.84 million, and for the current fiscal year, it is $8.46 on revenues of $1.37 billion [7] - The trend of estimate revisions for Precision Drilling has been unfavorable leading up to the earnings release [6] Industry Context - The Oil and Gas - Drilling industry is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting that the outlook for the industry could materially impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could be a useful measure for investors [5]