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RPC (RES) Down 14.4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for RPC (RES - Free Report) . Shares have lost about 14.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is RPC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
RPC Q1 Earnings Meet Estimates, Revenues Miss
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.
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 company expects a capital expenditure of $115 million, indicating a significant increase from $67.6 million reported last year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, RPC has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
RPC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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RPC (RES) Down 14.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for RPC (RES - Free Report) . Shares have lost about 14.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is RPC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
RPC Q1 Earnings Meet Estimates, Revenues Miss
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.
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 company expects a capital expenditure of $115 million, indicating a significant increase from $67.6 million reported last year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, RPC has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
RPC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.