Published on 27 Oct 2023 on Simply Wall St. via Yahoo Finance

Independence Contract Drilling, Inc.'s (NYSE:ICD) Profit Outlook

We feel now is a pretty good time to analyse Independence Contract Drilling, Inc.'s (NYSE:ICD) business as it appears the company may be on the cusp of a considerable accomplishment. Independence Contract Drilling, Inc. provides land-based contract drilling services for oil and natural gas producers in the United States. The US$40m market-cap company posted a loss in its most recent financial year of US$65m and a latest trailing-twelve-month loss of US$7.9m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Independence Contract Drilling will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Independence Contract Drilling

Independence Contract Drilling is bordering on breakeven, according to the 4 American Energy Services analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$3.1m in 2025. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 74%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.