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Rowan Companies (RDC) Reports Q4 Earnings, Revenues Fall Y/Y
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Global provider of contract drilling services, Rowan Companies plc reported adjusted fourth-quarter 2016 earnings from continuing operations of 8 cents per share. The Zacks Consensus Estimate was of a loss of 6 cents per share. The outperformance was supported by a considerable fall in total expense, partially offset by lower rig utilization. However, the bottom line deteriorated significantly from the year-ago quarter profit of 95 cents per share.
Total revenue was $351.8 million in the fourth quarter as against $535.8 million in the prior-year quarter.
Full-year 2016 adjusted earnings of $2.11 per share decreased 40.2% from the year-ago adjusted profit level of $3.53 per share.
Total revenue in 2016 declined 27.6% to $1,324.8 million from $1,829.9 million.
Dayrates and Utilization
The company's deepwater rigs had a dayrate of $464,500 compared with $623,300 in the year-ago quarter. Jackup rigs saw a dayrate of $156,600 as against $176,300 in the prior year.
The overall dayrate of all rigs was $207,600 compared with $250,100 in fourth-quarter 2015. Average utilization of the company's rigs was 65% as against 80% in the comparable quarter last year.
Total Expenses
During the quarter, the company reported $310.6 million in costs as against $355.6 million in the year-ago comparable period.
Financials
As of Dec 31, 2016, the company's cash balance was $1,255.5 million and long-term debt (including current maturities) was $2,553.4 million. The long term debt-to-capitalization ratio was 33.3%.
Rowan Companies PLC Price, Consensus and EPS Surprise
Rowan carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Delek Logistics Partners, LP (DKL - Free Report) , Sunrun Inc. (RUN - Free Report) and W&T Offshore Inc. (WTI - Free Report) . Both Delek Logistics Partners and Sunrun sport a Zacks Rank #1 (Strong Buy), while W&T Offshore holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek Logistics Partners posted a negative earnings surprise of 25.45% in the preceding quarter. It had an average negative surprise of 11.32% in the four trailing quarters.
Sunrun delivered a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 31.49%.
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Rowan Companies (RDC) Reports Q4 Earnings, Revenues Fall Y/Y
Global provider of contract drilling services, Rowan Companies plc reported adjusted fourth-quarter 2016 earnings from continuing operations of 8 cents per share. The Zacks Consensus Estimate was of a loss of 6 cents per share. The outperformance was supported by a considerable fall in total expense, partially offset by lower rig utilization. However, the bottom line deteriorated significantly from the year-ago quarter profit of 95 cents per share.
Total revenue was $351.8 million in the fourth quarter as against $535.8 million in the prior-year quarter.
Full-year 2016 adjusted earnings of $2.11 per share decreased 40.2% from the year-ago adjusted profit level of $3.53 per share.
Total revenue in 2016 declined 27.6% to $1,324.8 million from $1,829.9 million.
Dayrates and Utilization
The company's deepwater rigs had a dayrate of $464,500 compared with $623,300 in the year-ago quarter. Jackup rigs saw a dayrate of $156,600 as against $176,300 in the prior year.
The overall dayrate of all rigs was $207,600 compared with $250,100 in fourth-quarter 2015. Average utilization of the company's rigs was 65% as against 80% in the comparable quarter last year.
Total Expenses
During the quarter, the company reported $310.6 million in costs as against $355.6 million in the year-ago comparable period.
Financials
As of Dec 31, 2016, the company's cash balance was $1,255.5 million and long-term debt (including current maturities) was $2,553.4 million. The long term debt-to-capitalization ratio was 33.3%.
Rowan Companies PLC Price, Consensus and EPS Surprise
Rowan Companies PLC Price, Consensus and EPS Surprise | Rowan Companies PLC Quote
Zacks Rank
Rowan carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Delek Logistics Partners, LP (DKL - Free Report) , Sunrun Inc. (RUN - Free Report) and W&T Offshore Inc. (WTI - Free Report) . Both Delek Logistics Partners and Sunrun sport a Zacks Rank #1 (Strong Buy), while W&T Offshore holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek Logistics Partners posted a negative earnings surprise of 25.45% in the preceding quarter. It had an average negative surprise of 11.32% in the four trailing quarters.
Sunrun delivered a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
W&T Offshore posted a positive earnings surprise of 44.19% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 31.49%.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>