Precision Drilling Corporation (PD:CA), a leading provider of onshore drilling, completion, and production services across North America and the Middle East, is gearing up to release its fourth-quarter earnings on February 12, 2025.
The company has been actively reducing debt, enhancing cash flow, and focusing on expanding its drilling services portfolio. With analysts anticipating steady margins in Canada and the U.S., stakeholders are watching closely to see if Precision Drilling can maintain its momentum into 2025.
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Expected Q4 Earning Report of Precision Drilling Corporation:
Recent guidance suggests that Q4 drilling field margins in Canada and the U.S. are likely to align with previous estimates. Consensus EPS forecasts range from approximately CAD 1.34 to CAD 1.69, reflecting a potential dip from the prior quarter but still indicative of healthy operating performance. Analysts also note that share-based compensation expenses for Q4 may hover around CAD 15 million, in line with earlier projections.
Key highlights to watch in this Q4 report include:
- Debt Reduction: Precision Drilling has already surpassed the midpoint of its 2024 debt reduction target, positioning the company favorably for further deleveraging in 2025.
- Free Cash Flow: With strong cash flow in 2024, the company expects to continue funding share buybacks and capital investments aimed at fleet upgrades.
- International Operations: Activity in the Middle East, alongside stable demand in Canada, is anticipated to offset the more moderate U.S. rig count.
Stock Target Advisor’s Analysis on Precision Drilling Corporation:
Based on the Precision Drilling Corporation stock forecast from 5 analysts, the average analyst target price for Precision Drilling Corporation is CAD 121.91 over the next 12 months.
Precision Drilling Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Precision Drilling Corporation is Slightly Bullish, which is based on 7 positive signals and 5 negative signals.
At the last closing, Precision Drilling Corporation’s stock price was CAD 81.57. Precision Drilling Corporation’s stock price has changed by +0.61% over the past week, -11.88% over the past month and -5.74% over the last year.
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Latest Analyst Ratings and Targets
- TD Securities
- Action: Downgrade to Hold
- Target: CAD 100
- ATB Capital Markets
- Action: Buy
- Target: CAD 123
- CIBC World Markets
- Action: Outperform
- Target: CAD 125
Conclusion:
Precision Drilling Corporation’s upcoming Q4 earnings announcement on February 12, 2025 will be closely scrutinized by investors and analysts. The company’s focus on debt reduction, stable free cash flow, and international expansion underpins a generally optimistic outlook.
As Precision Drilling enters 2025, its ability to navigate volatile market conditions, maintain operational efficiency, and further strengthen its balance sheet will be pivotal for sustaining investor confidence.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
