Civeo Q2 revenue just shy of estimates, keeps FY outlook

Overview

• Civeo Q2 revenue of $162.7 mln missed analyst expectations

• Company reports Q2 net loss of $3.3 mln, contrasting last year's profit

• Co repurchased 883,000 shares, about 7% of total shares outstanding in Q2

Outlook

• Civeo maintains 2025 revenue guidance of $640 mln to $670 mln

• Company maintains 2025 adjusted EBITDA guidance of $86 mln to $96 mln

• Civeo maintains 2025 capital expenditure guidance of $20 mln to $25 mln

Result Drivers

• AUSTRALIAN GROWTH - Revenue increase driven by acquisition of four villages in the Bowen Basin and margin improvement in integrated services

• CANADIAN DECLINE - Revenue drop attributed to decreased billed rooms due to ongoing customer spending reductions

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy."

• Wall Street's median 12-month price target for Civeo Corp is $27.50, about 10.7% above its July 28 closing price of $24.55

• The stock recently traded at 158 times the next 12-month earnings vs. a P/E of 933 three months ago

Press Release: ID:nBw9zdMzya