Canada's Foraco Q4 revenue rises 4% on South America growth
Overview
Global drilling services firm's Q4 revenue rose 4% but missed analyst expectations
Net profit for Q4 increased 10% compared to last year
Company reported record order backlog, indicating strong future visibility
Outlook
Foraco expects to execute $228.5 mln of its backlog in FY 2026
Company sees strong revenue visibility for FY 2026 due to record backlog
Foraco plans capital expenditure to support long-term growth
Result Drivers
SOUTH AMERICA GROWTH - Revenue in South America nearly doubled year-on-year due to new long-term contracts
RECORD BACKLOG - Co reported record order backlog, providing strong visibility for future operations
SEASONAL BREAKS - Early seasonal break in drilling operations impacted North America and Asia-Pacific
Company press release: ID:nCNWhfR4sa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue |
| $63.10 mln | $64.15 mln (2 Analysts) |
Q4 Net Income |
| $2.31 mln |
|
Q4 EBITDA |
| $10.42 mln |
|
Q4 Gross Profit |
| $10.11 mln |
|
Q4 Operating Income |
| $5.12 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the mining support services & equipment peer group is "buy."
Wall Street's median 12-month price target for Foraco International SA is C$3.63, about 6.6% above its February 27 closing price of C$3.40
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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