Overview

• NCS Q3 revenue grows 6% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 slightly misses analyst estimates

• Company highlights strong contributions from ResMetrics acquisition

Outlook

• Company expects market conditions to deteriorate, including reduced Canadian drilling activity

• NCS anticipates potential oversupply in oil market due to OPEC+ production increases

• Company cites ongoing uncertainties related to tariffs and trade impacting outlook

Result Drivers

• REVENUE GROWTH - Total revenues increased by 6% yr/yr, driven by the acquisition of ResMetrics and growth in U.S. and international markets

• RESMETRICS IMPACT - ResMetrics acquisition contributed significantly to service revenue growth, particularly in tracer diagnostics

• CANADIAN MARKET DECLINE - Canadian revenues declined 19% due to reduced rig counts

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong 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 NCS Multistage Holdings Inc is $40.50, about 0.6% below its October 28 closing price of $40.74

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNXbmCLDj

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)