Independence Contract Drilling, Inc. (ICD) Unearths Clues To Earnings Performance

19 days have passed by since the last earnings report for Independence Contract Drilling, Inc. (NYSE:ICD) and the new quarterly results look set to arrive in 98 days. The shares of ICD at the moment are trading at a volume of 0.16 million, which compares with its normal daily standard volume of 255.73 million shares. This has led to the shares of the company advancing by 0.95%, currently exchanging hands at $0.82 a share. ICD stock has been up by $2.87 (-77.81%) ever since it reached its 52-week high of $3.69 back in January 09, 2019. It has progressed below its 50-day moving average of $0.9117 and is down -9.03% over the past week. The stock has retreated -2.4% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the ICD share price due for a breakout?

Independence Contract Drilling, Inc. (ICD) Forecasts And Latest Quarter Earnings

Ahead of their fiscal fourth-quarter to be released on Tuesday, Feb 25, 2020, 8 analysts who are covering the company are estimating that it will record a profit of -$0.09 per share, with analysts having different outlooks from -$0.11 to -$0.08. The current agreed outlook, when compared to the profit recorded last year, is at $0.01 a share, thus a decrease of -1000% is expected. The profit view for a complete financial year for Independence Contract Drilling, Inc. is expected to be around -$0.23 in current year, a decline of nearly 35.29% from last year which was -$0.17.

Let’s now look at their sales section, ICD’s revenue is estimated to be $62.79M, a figure which is less than the $62.79M recorded for Q4 last year. Their sequential sales though are expected to move versus Q3’s $45.07B. Their full-year outlook is pegged at $201.76M, implying that there would be an increase of 41.48% over the $142.61M they recorded last year in revenue. Independence Contract Drilling, Inc. is projected to get sales cut by -4.65% in the next quarter, with a revenue target of $192.38M.

Analyzing The Earnings History Of Independence Contract Drilling, Inc. (NYSE:ICD)

In the past few years, the ICD stock has been known to miss the Wall Street’s earnings projection. The company missed 16% of the time, according to the data pulled on their earnings, was able to meet predictions on 3 occasions and topped expectations 7 times. Looking at the past trend, the price of Independence Contract Drilling, Inc. shares had risen following the release of their earnings in 10 of the last 18 quarters.

Looking back, here is how Independence Contract Drilling, Inc. (ICD) stock reacted to earnings misses and beats. It gave investors reason to be bullish with the price going down after 1 of the last four earnings reports. The shares of Independence Contract Drilling, Inc. recorded 7.23%, -15.15%, 4.87% and 13.87%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 13.25%, -4.55%, 0% and -4.19%. Their post-earnings price movements have resulted in an average increase of 2.71% and an average increase of 1.13% in Independence Contract Drilling, Inc. on next day and 7th day, sequentially. ICD’s one month stock performance led to its shares declining by -0.97% with a return of -76.81% witnessed over the last 52 weeks.

The higher number of analysts has assigned a buy or better ratings (5) on the Independence Contract Drilling, Inc. stock, while 3 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $1.87. This price target implies potential upside of 128.05 percent over the next 12 months based on the current share price.

Independence Contract Drilling, Inc. (ICD) Post Earnings Announcement Drift (PEAD)

Back on October 31, 2019, Independence Contract Drilling, Inc. (NYSE:ICD) released its Q3 results, in which it recorded a loss of -$0.1 that was in line with consensus estimates of -$0.1. After the earnings were reported, the price of stock kicked off the session at $0.82 and remained in a range of $0.83 to $0.9 on the first day. The shares were priced at $0.89 at the close with a total volume of shares being 210384.

On August 01, 2019, the Q2 earnings report was disclosed with loss per share of -$0.07. This was below the estimation of -$0.04 per share. The stock’s price was in the range of between $1.39 and $1.4 on the first-day post announcement, after opening the day at $1.05. The session came to close at $1.12 and there was a total volume of 444631 shares.

May 02, 2019 was the day when its Q1 results were unveiled. The earnings came in at $0.04, beating the projected -$0.01 per share. The very next day, price of stock opened at $2.63 while staying in a range of $2.84 to $2.84. At the end, it moved to $2.8 a total volume of shares been 170940.

In the year-ago Q4 earnings on March 01, 2019, the company saw profit per share of $0.01. That was better than the -$0.02 analysts had expected. Company’s share price started at $3.36 on the first full trading day post-earning and then exchanged hands between $3.58 and $3.67 throughout the session. The closing price of $3.53 came on the back of 438647 shares in volume.