Courtesy of Benzinga.
Shares of Pioneer Drilling (NYSE: PDC) are seeing increased weakness during Monday’s trading session after the company announced weak second quarter guidance.
Pioneer Drilling now expects revenue growth in its Production Services Division to be at the low end of its estimate of approximately 5 to 10 percent. Margin as a percentage of revenues in that division is now expected to be 40% to 42%, which is worse than the first quarter margin of 43.6%, which Pioneer Drilling initially estimated.
In the company’s Drilling Services Division, Pioneer Drilling now expect average drilling rig utilization in the second quarter to be at the low end of its previous guidance of 89% to 91%. The company also expects Drilling Services margin to be $7,600 to $8,000 per day, compared to previous guidance of approximately $8,000 to $8,300 per day.
Currently, shares of Pioneer Drilling are trading down about 13 percent at $6.62 per share.
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