We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RPC Inc. (RES - Free Report) has declined 19.2% since the first-quarter earnings announcement on Apr 27.
The company’s stock price slipped despite reporting a strong bottom-line number in the first quarter. The stock movement could be attributed to significantly higher year-over-year expenses, resulting from increased activity levels and inflationary effects.
Q1 Results
RPC reported adjusted earnings of 7 cents per share for the first quarter, in line with the Zacks Consensus Estimate. The bottom line compares favorably with the year-ago quarter’s loss of 5 cents.
Total quarterly revenues of $284.6 million missed the Zacks Consensus Estimate of $291 million. However, the top line significantly improved from the year-ago figure of $182.6 million.
The in-line quarterly earnings were backed by higher activity levels in all the service lines and improved pricing.
Operating profit in the Technical Services segment totaled $21.8 million against a loss of $5.8 million in the year-ago quarter. The improvement can be attributed to higher activity levels in most service lines and improved pricing.
Operating profit in the Support Services segment was $2.8 million, turning around from a year-ago loss of $2.9 million in the year-ago quarter. The upside was caused by increased activities.
Total operating profit for the quarter was $23 million, significantly improving from the year-ago loss of $10.5 million. The average domestic rig count was 636 for the March-end quarter, reflecting a 60.6% increase from the year-ago level. The average oil price for the quarter was $95.06 per barrel. The same for natural gas was $4.68 per thousand cubic feet.
Cost and Expenses
In first-quarter 2022, the cost of revenues increased from $146.2 million to $208.8 million. Selling, general and administrative expenses increased to $36.2 million from the year-ago figure of $30.6 million.
The increased cost of revenues was mainly due to higher expenses related to increased activity levels, fuel costs and others.
Financials
RPC’s total capital expenditure for the March-end quarter of 2022 amounted to $19.1 million.
As of Mar 31, RPC had cash and cash equivalents of $73.2 million, down sequentially from $82.4 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Outlook
For 2022, the Zack Rank #3 (Hold) company expects a capital expenditure of $115 million, indicating a significant increase from $67.6 million reported last year.
Shell plc (SHEL - Free Report) reported first-quarter earnings per ADS on a current cost of supplies basis, excluding items, of $2.38. The bottom line surpassed the Zacks Consensus Estimate of $2.12, owing to higher commodity prices.
As of Mar 31, 2022, Shell had $38.4 billion in cash and $86 billion in debt (including short-term debt). In the quarter, Shell generated cash flow from operations of $14.8 billion, returned $2 billion to its shareholders through dividends and spent $4.2 billion cash on capital projects.
BP plc (BP - Free Report) reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share (“ADS”) on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share, owing to higher realizations of commodity prices.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering the Brent crude price at $60 per barrel.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on a weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents, and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. CVX paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
RPC (RES) Stock Slips 19.2% Despite Reporting Q1 Earnings Meet
RPC Inc. (RES - Free Report) has declined 19.2% since the first-quarter earnings announcement on Apr 27.
The company’s stock price slipped despite reporting a strong bottom-line number in the first quarter. The stock movement could be attributed to significantly higher year-over-year expenses, resulting from increased activity levels and inflationary effects.
Q1 Results
RPC reported adjusted earnings of 7 cents per share for the first quarter, in line with the Zacks Consensus Estimate. The bottom line compares favorably with the year-ago quarter’s loss of 5 cents.
Total quarterly revenues of $284.6 million missed the Zacks Consensus Estimate of $291 million. However, the top line significantly improved from the year-ago figure of $182.6 million.
The in-line quarterly earnings were backed by higher activity levels in all the service lines and improved pricing.
RPC, Inc. Price, Consensus and EPS Surprise
RPC, Inc. price-consensus-eps-surprise-chart | RPC, Inc. Quote
Segmental Performance
Operating profit in the Technical Services segment totaled $21.8 million against a loss of $5.8 million in the year-ago quarter. The improvement can be attributed to higher activity levels in most service lines and improved pricing.
Operating profit in the Support Services segment was $2.8 million, turning around from a year-ago loss of $2.9 million in the year-ago quarter. The upside was caused by increased activities.
Total operating profit for the quarter was $23 million, significantly improving from the year-ago loss of $10.5 million. The average domestic rig count was 636 for the March-end quarter, reflecting a 60.6% increase from the year-ago level. The average oil price for the quarter was $95.06 per barrel. The same for natural gas was $4.68 per thousand cubic feet.
Cost and Expenses
In first-quarter 2022, the cost of revenues increased from $146.2 million to $208.8 million. Selling, general and administrative expenses increased to $36.2 million from the year-ago figure of $30.6 million.
The increased cost of revenues was mainly due to higher expenses related to increased activity levels, fuel costs and others.
Financials
RPC’s total capital expenditure for the March-end quarter of 2022 amounted to $19.1 million.
As of Mar 31, RPC had cash and cash equivalents of $73.2 million, down sequentially from $82.4 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Outlook
For 2022, the Zack Rank #3 (Hold) company expects a capital expenditure of $115 million, indicating a significant increase from $67.6 million reported last year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Players’ Q1 Results
Shell plc (SHEL - Free Report) reported first-quarter earnings per ADS on a current cost of supplies basis, excluding items, of $2.38. The bottom line surpassed the Zacks Consensus Estimate of $2.12, owing to higher commodity prices.
As of Mar 31, 2022, Shell had $38.4 billion in cash and $86 billion in debt (including short-term debt). In the quarter, Shell generated cash flow from operations of $14.8 billion, returned $2 billion to its shareholders through dividends and spent $4.2 billion cash on capital projects.
BP plc (BP - Free Report) reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share (“ADS”) on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share, owing to higher realizations of commodity prices.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering the Brent crude price at $60 per barrel.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on a weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents, and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. CVX paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.