NEW YORK (TheStreet) -- Shares of Precision Drilling (PDS - Get Report) were advancing in early afternoon trading on Friday after the company reported a narrower-than-expected loss for the 2016 third quarter.
Before today's market open, the Calgary-based oilfield services provider posted a loss of 12 cents per share, topping analysts' estimates for a 16-cent loss per share.
Revenue for the quarter slid 45% year-over-year to $152.7 million and missed Wall Street's projections of $164.4 million.
The decline in revenue was due to lower activity in all of the company's operations, Precision Drilling said.
For 2016, the company expects to spend $222 million on capital expenses including rig upgrades, infrastructure costs and expansion capital.
CEO Kevin Neveu said that customer sentiment has improved due to growing commodity prices. He added that "we continue to remain cautious as we believe this optimism may be fragile and sensitive to commodity pricing volatility."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.
You can view the full analysis from the report here: PDS