Overview
NCS Q3 revenue grows 6% yr/yr, beating analyst expectations
Adjusted EBITDA for Q3 slightly misses analyst estimates
Company highlights strong contributions from ResMetrics acquisition
Outlook
Company expects market conditions to deteriorate, including reduced Canadian drilling activity
NCS anticipates potential oversupply in oil market due to OPEC+ production increases
Company cites ongoing uncertainties related to tariffs and trade impacting outlook
Result Drivers
REVENUE GROWTH - Total revenues increased by 6% yr/yr, driven by the acquisition of ResMetrics and growth in U.S. and international markets
RESMETRICS IMPACT - ResMetrics acquisition contributed significantly to service revenue growth, particularly in tracer diagnostics
CANADIAN MARKET DECLINE - Canadian revenues declined 19% due to reduced rig counts
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $46.50 mln | $46.05 mln (2 Analysts) |
Q3 Adjusted EBITDA | Miss | $7 mln | $7.02 mln (2 Analysts) |
Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the oil related services and equipment peer group is "buy."
Wall Street's median 12-month price target for NCS Multistage Holdings Inc is $40.50, about 0.6% below its October 28 closing price of $40.74
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nGNXbmCLDj
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)