Precision Drilling Corp. plummeted following the premarket announcement of fourth-quarter earnings that fell shy of estimates.
The Calgary-based company reported revenue of $511-million, up 19 per cent sequentially and well above the Street’s expectation of $484.9-million. However, EBITDA of $91.1-million missed the consensus forecast of $148.5-million.
ATB Capital Markets analyst Waqar Syed said: “PD’s results had positives and negatives. Operationally, the quarter was stronger than expected, with good margin strength in the US and Canada. Also, strong FCF in Q4/22, above-target debt reduction in 2022, and management’s raising of the 2022-2025 debt reduction target were also positive. However, share-based compensation was well above forecast and will likely be negatively received by the market. PD’s stock has recently lagged, and some of the negative news may already be priced in.”