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Rowan Companies (RDC) Beats on Q3 Earnings & Revenues
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Global provider of contract drilling services, Rowan Companies plc reported adjusted third-quarter 2016 earnings from continuing operations of 30 cents per share, which comfortably surpassed the Zacks Consensus Estimate of 1 cent. The outperformance was supported by a considerable fall in total expenses, partially offset by lower rig utilization. However, the bottom line deteriorated significantly from the year-ago quarter profit of 89 cents per share.
Total revenues were $379.4 million in the third quarter as against $545.4 million in the prior-year quarter. The top line, however, surpassed the Zacks Consensus Estimate of $363 million.
Dayrates and Utilization
The company's deepwater rigs had a dayrate of $490,000 compared with $610,900 in the year-ago quarter. Jackup rigs saw a dayrate of $158,800 as against $164,900 in the prior year.
The overall dayrate of all rigs was $210,100 compared with $234,500 in third-quarter 2015. Average utilization of the company's rigs was 69% as against 82% in the comparable quarter last year.
Total Expenses
During the quarter, the company reported $345.8 million in costs as against $716 million in the year-ago comparable period.
Financials
As of Sep 30, 2016, the company's cash balance was $1,037.5 million and long-term debt (including current maturities) was $2,645.6 million. The long term debt-to-capitalization ratio was 33.9%.
Rowan currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
EQT Midstream is projected to witness year-over-year earnings growth of almost 12% in the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
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Rowan Companies (RDC) Beats on Q3 Earnings & Revenues
Global provider of contract drilling services, Rowan Companies plc reported adjusted third-quarter 2016 earnings from continuing operations of 30 cents per share, which comfortably surpassed the Zacks Consensus Estimate of 1 cent. The outperformance was supported by a considerable fall in total expenses, partially offset by lower rig utilization. However, the bottom line deteriorated significantly from the year-ago quarter profit of 89 cents per share.
Total revenues were $379.4 million in the third quarter as against $545.4 million in the prior-year quarter. The top line, however, surpassed the Zacks Consensus Estimate of $363 million.
Dayrates and Utilization
The company's deepwater rigs had a dayrate of $490,000 compared with $610,900 in the year-ago quarter. Jackup rigs saw a dayrate of $158,800 as against $164,900 in the prior year.
The overall dayrate of all rigs was $210,100 compared with $234,500 in third-quarter 2015. Average utilization of the company's rigs was 69% as against 82% in the comparable quarter last year.
Total Expenses
During the quarter, the company reported $345.8 million in costs as against $716 million in the year-ago comparable period.
Financials
As of Sep 30, 2016, the company's cash balance was $1,037.5 million and long-term debt (including current maturities) was $2,645.6 million. The long term debt-to-capitalization ratio was 33.9%.
ROWAN COS PLC Price, Consensus and EPS Surprise
ROWAN COS PLC Price, Consensus and EPS Surprise | ROWAN COS PLC Quote
Zacks Rank and Key Stock Picks
Rowan currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Ultra Petroleum Corp. , EQT Midstream Partners, LP and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
Ultra Petroleum is likely to witness year-over-year earnings growth of 351.6% in the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Midstream is projected to witness year-over-year earnings growth of almost 12% in the current year. It has a Zacks Rank #2 (Buy).
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>