Civeo Corporation (Canada) (NYSE:CVEO) Looking Technically Interesting


Global workforce accommodation specialist Civeo Corporation (Canada) (NYSE:CVEO) just reported the second quarter on the run that was a beat on both revenue and earnings.

The stock shot up 5.97% to close Thursday at $1.42, on volume of 2.47 million shares, nearly 4X the average volume.

The company’s core markets for providing accommodation are mining companies and resource exploration ventures in oil, coal, natural gas and iron ore producing regions in Canada, Australia and the U.S.

Civeo Corporation (Canada) (NYSE:CVEO)’s technical picture

Technically, on the daily chart the stock made a double bottom in September, and its technical strength thereafter has steadily improved. In fact the stock’s move higher over the last two sessions has confirmed the formation of the bullish, inverted head-and-shoulders pattern with its neckline at $$1.30.

The neckline was penetrated on Wednesday on a closing basis. After yesterday’s surge the stock has closed above the 200-day moving average, too.

So, the picture gets more bullish.

Civeo Corporation (Canada) (NYSE:CVEO)’s double beat in Q3

For the third quarter, Civeo reported EPS of $-0.12 which beat by $0.05 and revenue of $104.2 million which beat by $8 million and was down 2.2% year on year.

The results also exceeded the company’s own guidance due to a lid on costs, higher occupancy in Canada and a better performance in Australia.

“Our operational execution in the third quarter continued to exceed our expectations despite the persistent macroeconomic headwinds impacting our core end markets. Although the recent stabilization in global crude oil spot prices is encouraging, we remain committed to vigilant cost control, positive free cash flow generation and debt reduction,” said Bradley J. Dodson, President and Chief Executive Officer, in a statement.

For the third quarter adjusted net loss (removing special items) was $13.3 million (loss of $15.1 million in the year ago period) or $0.12 per diluted share ($0.15).  During the third quarter of 2016, adjusted EBITDA was $25.4 million ($25.3 million) and the company generated operating cash flow of $13.7 million ($80.6 million) and free cash flow of $10.7 million ($61.5 million).

Civeo Corporation (Canada) (NYSE:CVEO)’s guidance 2016

For the full year 2016 the company expects in the range of $394 million to $398 million with adjusted EBITDA guidance for the full year of $84 million to $87 million (increase from the full year guidance given last quarter).

“Civeo is well-positioned to both weather the downturn and pivot opportunistically should the recent stabilization in our core markets be a harbinger of a broader recovery in 2017,” said Dodson on the earnings call.


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