NEW YORK (TheStreet) -- Shares of Precision Drilling Corp. (PDS) - Get Precision Drilling Corporation Report are up 1.04% to $12.69 on Monday, after the company released its earnings report for the first quarter 2014.
The company, which provides contract drilling, completion and production services to oil and gas exploration companies in the U.S. and Canada, reported net earnings for the quarter were $102 million, or $0.35 per diluted share, compared to the $93 million, or $0.33 per diluted share reported in the first quarter 2013.
Revenue for the quarter was $672 million, a 13% increase from the $534 million reported during the same quarter in 2013.
The company said it is increasing its 2014 capital plan, to $833 million from $634 million, in response to strong customer demand for its new-build super series rigs.
TheStreet Ratings team rates PRECISION DRILLING CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PRECISION DRILLING CORP (PDS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 158.4% when compared to the same quarter one year prior, rising from -$116.34 million to $67.92 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 157.14% and other important driving factors, this stock has surged by 59.71% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- PRECISION DRILLING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, PRECISION DRILLING CORP increased its bottom line by earning $0.67 versus $0.17 in the prior year.
- 40.82% is the gross profit margin for PRECISION DRILLING CORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.98% trails the industry average.
- You can view the full analysis from the report here: PDS Ratings Report