Where Parker Drilling Company (NYSE:PKD) Stands In Terms Of Earnings Growth Against Its Industry

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Parker Drilling Company's (NYSE:PKD) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. View out our latest analysis for Parker Drilling

Were PKD's earnings stronger than its past performances and the industry?

PKD is loss-making, with the most recent trailing twelve-month earnings of -US$111.64m (from 31 March 2018), which compared to last year has become less negative. However, the company's loss seem to be contracting over the medium term, with the five-year earnings average of -US$57.92m. Each year, for the past five years PKD has seen an annual decline in revenue of -6.66%, on average. This adverse movement is a driver of the company's inability to reach breakeven. Eyeballing growth from a sector-level, the US energy services industry has been growing its average earnings by double-digit 32.94% over the past year, . This is a change from a volatile drop of -17.09% in the previous few years. This means though Parker Drilling is currently running a loss, it may have only just been aided by the recent industry expansion, moving earnings into a more favorable position.

Although Parker Drilling is loss-making, it has an ample cash cushion (US$118.32m) to pay for its upcoming operating expenses over the next couple of years. This is a strong indication of good cash management.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most valuable step is to examine company-specific issues Parker Drilling may be facing and whether management guidance has steadily been met in the past. You should continue to research Parker Drilling to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for PKD’s future growth? Take a look at our free research report of analyst consensus for PKD’s outlook.
2. Financial Health: Is PKD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.