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Factors Likely to Decide the Fate of RPC (RES) in Q2 Earnings
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RPC Inc (RES - Free Report) is set to report second-quarter 2024 earnings on Jul 25, before the opening bell.
In the last reported quarter, the company’s earnings of 13 cents per share missed the Zacks Consensus Estimate of 19 cents due to decreased activity levels and competitive pricing across various service lines. RES’s earnings beat the Zacks Consensus Estimate in one of the trailing three quarters and missed the same twice, delivering an average negative surprise of 13.3%. This is depicted in the graph below.
The Zacks Consensus Estimate for second-quarter earnings per share of 13 cents has witnessed no change over the past 30 days. The estimated figure suggests a plunge of almost 57% from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for second-quarter revenues of $385.7 million indicates a 7.3% decline from the year-ago reported figure.
Factors to Consider
According to the U.S. Energy Information Administration, the average spot prices for West Texas Intermediate crude at Cushing, OK, were $85.35 per barrel in April, $80.02 in May and $79.77 in June. This indicates that the crude pricing environment in the second quarter was highly favorable for exploration and production activities. Despite this favorable pricing, drilling activities declined both domestically and internationally.
Baker Hughes Company (BKR - Free Report) reported that the number of rigs operating in North America during the June quarter was 738, down from 831 in the first quarter. In the international market, the count was 963 in the second quarter, which also declined from the prior quarter.
The decrease in drilling activities in both domestic and international markets suggests that explorers and producers spent less on upstream activities. Lower spending by customers is likely to have affected the demand for services provided by the oilfield service provider RPC. The Zacks Consensus Estimate for the company’s operating profit from Technical Services is pegged at $35 million, lower than $77 million in the year-ago quarter. Notably, the Technical Services business unit is the major revenue contributor.
Earnings Whispers
Our proven model does not indicate an earnings beat for RPC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: RES’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
MUSA is scheduled to release second-quarter earnings on Jul 31. The Zacks Consensus Estimate for its earnings is pegged at $6.90 per share, suggesting an almost 15% increase from the prior-year reported figure.
Marathon Oil Corporation (MRO - Free Report) presently has an Earnings ESP of +2.98% and a Zacks Rank #3.
Marathon Oil is scheduled to release second-quarter earnings on Aug 7. The Zacks Consensus Estimate for its earnings is pegged at 69 cents per share, suggesting a 43.8% increase from the prior-year reported figure.
Baker Hughes currently has an Earnings ESP of +0.75% and a Zacks Rank #3.
Baker Hughes is scheduled to release second-quarter earnings on Jul 25. The Zacks Consensus Estimate for its earnings is pegged at 49 cents per share, suggesting a 25.6% improvement from the prior-year reported figure.
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Factors Likely to Decide the Fate of RPC (RES) in Q2 Earnings
RPC Inc (RES - Free Report) is set to report second-quarter 2024 earnings on Jul 25, before the opening bell.
In the last reported quarter, the company’s earnings of 13 cents per share missed the Zacks Consensus Estimate of 19 cents due to decreased activity levels and competitive pricing across various service lines. RES’s earnings beat the Zacks Consensus Estimate in one of the trailing three quarters and missed the same twice, delivering an average negative surprise of 13.3%. This is depicted in the graph below.
RPC, Inc. Price and EPS Surprise
RPC, Inc. price-eps-surprise | RPC, Inc. Quote
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings per share of 13 cents has witnessed no change over the past 30 days. The estimated figure suggests a plunge of almost 57% from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for second-quarter revenues of $385.7 million indicates a 7.3% decline from the year-ago reported figure.
Factors to Consider
According to the U.S. Energy Information Administration, the average spot prices for West Texas Intermediate crude at Cushing, OK, were $85.35 per barrel in April, $80.02 in May and $79.77 in June. This indicates that the crude pricing environment in the second quarter was highly favorable for exploration and production activities. Despite this favorable pricing, drilling activities declined both domestically and internationally.
Baker Hughes Company (BKR - Free Report) reported that the number of rigs operating in North America during the June quarter was 738, down from 831 in the first quarter. In the international market, the count was 963 in the second quarter, which also declined from the prior quarter.
The decrease in drilling activities in both domestic and international markets suggests that explorers and producers spent less on upstream activities. Lower spending by customers is likely to have affected the demand for services provided by the oilfield service provider RPC. The Zacks Consensus Estimate for the company’s operating profit from Technical Services is pegged at $35 million, lower than $77 million in the year-ago quarter. Notably, the Technical Services business unit is the major revenue contributor.
Earnings Whispers
Our proven model does not indicate an earnings beat for RPC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: RES’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Murphy USA Inc. (MUSA - Free Report) currently has an Earnings ESP of +0.10% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MUSA is scheduled to release second-quarter earnings on Jul 31. The Zacks Consensus Estimate for its earnings is pegged at $6.90 per share, suggesting an almost 15% increase from the prior-year reported figure.
Marathon Oil Corporation (MRO - Free Report) presently has an Earnings ESP of +2.98% and a Zacks Rank #3.
Marathon Oil is scheduled to release second-quarter earnings on Aug 7. The Zacks Consensus Estimate for its earnings is pegged at 69 cents per share, suggesting a 43.8% increase from the prior-year reported figure.
Baker Hughes currently has an Earnings ESP of +0.75% and a Zacks Rank #3.
Baker Hughes is scheduled to release second-quarter earnings on Jul 25. The Zacks Consensus Estimate for its earnings is pegged at 49 cents per share, suggesting a 25.6% improvement from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.