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RPC (RES) Down 27.1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for RPC (RES - Free Report) . Shares have lost about 27.1% 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 Q4 Loss Narrower Than Estimates, Revenues Miss
RPC Inc’s fourth-quarter 2019 loss of 7 cents was narrower than the Zacks Consensus Estimate of a loss of 10 cents on successful cost-containment efforts.
However, the bottom line compared unfavorably against the year-ago quarter’s earnings of 6 cents per share. The weakness can primarily be attributed to lower activity levels and pricing along with a smaller-fleet of pressure pumping equipment.
Total revenues of $236 million missed the Zacks Consensus Estimate of $242 million. Moreover, the top line declined from the year-ago quarter’s figure of $377 million.
Segmental Performance
Operating loss in the Technical Services segment totaled $17.1 million against the year-ago quarter’s profit of $19.8 million. The underperformance was mainly caused by lower pricing and activity levels.
Operating profit in the Support Services segment came in at $1.2 million, down from $2.5 million in the year-ago quarter. Seasonal weakness in most of the service lines hurt this segment.
Cost and Expenses
Cost of revenues contracted from $274.4 million in fourth-quarter 2018 to $176.8 million due to lower activity levels and cost-reduction actions.
Financials
RPC’s total capital expenditure in the December quarter of 2019 amounted to $41.4 million. As of Dec 31, the company had cash and cash equivalents of $50 million and no long-term debt.
Outlook
The slowdown in drilling activities in U.S. resources and persistent weakness in crude prices have hurt demand for oilfield services. Although the company has witnessed slight improvement in January and is finishing the month on a strong note, it is uncertain of how things will turn out in the near term.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 27.08% due to these changes.
VGM Scores
Currently, RPC has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 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 27.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for RPC (RES - Free Report) . Shares have lost about 27.1% 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 Q4 Loss Narrower Than Estimates, Revenues Miss
RPC Inc’s fourth-quarter 2019 loss of 7 cents was narrower than the Zacks Consensus Estimate of a loss of 10 cents on successful cost-containment efforts.
However, the bottom line compared unfavorably against the year-ago quarter’s earnings of 6 cents per share. The weakness can primarily be attributed to lower activity levels and pricing along with a smaller-fleet of pressure pumping equipment.
Total revenues of $236 million missed the Zacks Consensus Estimate of $242 million. Moreover, the top line declined from the year-ago quarter’s figure of $377 million.
Segmental Performance
Operating loss in the Technical Services segment totaled $17.1 million against the year-ago quarter’s profit of $19.8 million. The underperformance was mainly caused by lower pricing and activity levels.
Operating profit in the Support Services segment came in at $1.2 million, down from $2.5 million in the year-ago quarter. Seasonal weakness in most of the service lines hurt this segment.
Cost and Expenses
Cost of revenues contracted from $274.4 million in fourth-quarter 2018 to $176.8 million due to lower activity levels and cost-reduction actions.
Financials
RPC’s total capital expenditure in the December quarter of 2019 amounted to $41.4 million. As of Dec 31, the company had cash and cash equivalents of $50 million and no long-term debt.
Outlook
The slowdown in drilling activities in U.S. resources and persistent weakness in crude prices have hurt demand for oilfield services. Although the company has witnessed slight improvement in January and is finishing the month on a strong note, it is uncertain of how things will turn out in the near term.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 27.08% due to these changes.
VGM Scores
Currently, RPC has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, RPC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.