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Why Is RPC (RES) Down 8.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for RPC (RES - Free Report) . Shares have lost about 8.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.
RPC’s Earnings and Revenues Outpace Estimates in Q4
RPC reported adjusted earnings of 41 cents per share in the fourth quarter, beating the Zacks Consensus Estimate of 30 cents. The bottom line significantly increased from the year-ago quarter’s 6 cents per share.
Total quarterly revenues of $482 million beat the Zacks Consensus Estimate of $450 million. The top line significantly improved from the year-ago figure of $268 million.
The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
Segmental Performance
Operating profit in the Technical Services segment totaled $110.5 million, higher than the year-ago quarter’s profit of $20.5 million. The upside was caused by increased customer activities, along with higher pricing and a larger active fleet of revenue-producing equipment.
Operating profit in the Support Services segment was $6.7 million, reversing from a year-ago loss of $373,000. The improvement was owing to a hike in pricing within rental tools, along with increased activities.
Total operating profit in the quarter was $112.3 million, skyrocketing from $20.1 million. The average domestic rig count was 776, reflecting a 38.3% increase from the year-ago level. The average oil price in the quarter was $82.67 per barrel. The same for natural gas was $5.55 per thousand cubic feet.
Cost and Expenses
In fourth-quarter 2022, the cost of revenues increased from $200.6 million to $308.6 million. Selling, general and administrative expenses increased to $38.2 million from the year-ago figure of $32.1 million.
Financials
RPC’s total capital expenditure for the December-end quarter of 2022 amounted to $49.3 million.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 28.13% due to these changes.
VGM Scores
At this time, RPC has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise RPC has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is RPC (RES) Down 8.1% Since Last Earnings Report?
A month has gone by since the last earnings report for RPC (RES - Free Report) . Shares have lost about 8.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.
RPC’s Earnings and Revenues Outpace Estimates in Q4
RPC reported adjusted earnings of 41 cents per share in the fourth quarter, beating the Zacks Consensus Estimate of 30 cents. The bottom line significantly increased from the year-ago quarter’s 6 cents per share.
Total quarterly revenues of $482 million beat the Zacks Consensus Estimate of $450 million. The top line significantly improved from the year-ago figure of $268 million.
The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
Segmental Performance
Operating profit in the Technical Services segment totaled $110.5 million, higher than the year-ago quarter’s profit of $20.5 million. The upside was caused by increased customer activities, along with higher pricing and a larger active fleet of revenue-producing equipment.
Operating profit in the Support Services segment was $6.7 million, reversing from a year-ago loss of $373,000. The improvement was owing to a hike in pricing within rental tools, along with increased activities.
Total operating profit in the quarter was $112.3 million, skyrocketing from $20.1 million. The average domestic rig count was 776, reflecting a 38.3% increase from the year-ago level. The average oil price in the quarter was $82.67 per barrel. The same for natural gas was $5.55 per thousand cubic feet.
Cost and Expenses
In fourth-quarter 2022, the cost of revenues increased from $200.6 million to $308.6 million. Selling, general and administrative expenses increased to $38.2 million from the year-ago figure of $32.1 million.
Financials
RPC’s total capital expenditure for the December-end quarter of 2022 amounted to $49.3 million.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 28.13% due to these changes.
VGM Scores
At this time, RPC has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise RPC has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.