Canada's McCoy Global Q2 revenue rises 21%
Overview
McCoy Global Q2 revenue rises 21% yr/yr, driven by smarTR technology commercialization
Net earnings for Q2 fall 56% due to higher stock-based compensation expenses
Adjusted EBITDA for Q2 increases slightly, reflecting stable operational performance
Outlook
Company expects tempered Q3 revenue and earnings growth due to market conditions
McCoy anticipates medium-term stability in MENA oil & gas markets
Company sees additional TRS contract awards in Eastern Hemisphere markets
McCoy focuses on strategic initiatives to drive long-term value creation
Result Drivers
SMARTPRODUCT REVENUE - SmartProduct revenue rose 117%, now accounting for 58% of total revenue, driven by smarTR technology commercialization
STOCK-BASED COMPENSATION - Net earnings impacted by higher stock-based compensation expenses due to share price appreciation
BAD DEBTS - Adjusted EBITDA margins affected by provisions for bad debts, contrasting with previous period recovery
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| C$24.05 mln |
|
Q2 Net Income |
| C$1.37 mln |
|
Q2 Adjusted EBITDA |
| C$4.82 mln |
|
Q2 EBITDA |
| C$2.98 mln |
|
Q2 Gross Profit |
| C$8.70 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "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 McCoy Global Inc is C$6.00, about 39.7% above its August 7 closing price of C$3.62
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nCNW3vnrSa
