It has been about a month since the last earnings report for Rowan Companies PLC . Shares have lost about 7.7% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 drivers.
Rowan Companies Misses on Q1 Earnings, Beats Revenues
Rowan Companies plc reported adjusted first-quarter 2017 earnings from continuing operations of $0.07 per share, which lagged the Zacks Consensus Estimate of $0.13. The decline was mainly due to a considerable decline in dayrates, partially offset by higher rig utilization. The bottom line also deteriorated significantly from the year-ago quarter profit of $0.98 per share.
Total revenue was $374.3 million in the first quarter as against $500.2 million in the prior-year quarter. Revenues, however, beat the Zacks Consensus Estimate by 3.3%.
Dayrates and Utilization
The company's deepwater rigs had a dayrate of $592,100 compared with $612,400 in the year-ago quarter. Jackup rigs saw a dayrate of $135,700 as against $182,300 in the prior year.
The overall dayrate of all rigs was $203,500 compared with $266,000 in first-quarter 2016. Average utilization of the company's rigs was 75% as against 73% in the comparable quarter last year.
Total Expenses
For the quarter, the company reported $296.5 million in costs as against $332.8 million in the year-ago comparable period.
Financials
As of Mar 31, 2017, the company's cash balance was $1,173.2 million and long-term debt (including current maturities) was $2,552.5 million. The long-term debt-to-capitalization ratio was 32.4%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one upward revision in the current quarter compared to three lower.
VGM Scores
At this time, Rowan Companies' stock has a subpar Growth Score of 'D', while its momentum is lagging a bit with 'F'. However, 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 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Rowan Companies (RDC) Down 7.7% Since the Last Earnings Report?
It has been about a month since the last earnings report for Rowan Companies PLC . Shares have lost about 7.7% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 drivers.
Rowan Companies Misses on Q1 Earnings, Beats Revenues
Rowan Companies plc reported adjusted first-quarter 2017 earnings from continuing operations of $0.07 per share, which lagged the Zacks Consensus Estimate of $0.13. The decline was mainly due to a considerable decline in dayrates, partially offset by higher rig utilization. The bottom line also deteriorated significantly from the year-ago quarter profit of $0.98 per share.
Total revenue was $374.3 million in the first quarter as against $500.2 million in the prior-year quarter. Revenues, however, beat the Zacks Consensus Estimate by 3.3%.
Dayrates and Utilization
The company's deepwater rigs had a dayrate of $592,100 compared with $612,400 in the year-ago quarter. Jackup rigs saw a dayrate of $135,700 as against $182,300 in the prior year.
The overall dayrate of all rigs was $203,500 compared with $266,000 in first-quarter 2016. Average utilization of the company's rigs was 75% as against 73% in the comparable quarter last year.
Total Expenses
For the quarter, the company reported $296.5 million in costs as against $332.8 million in the year-ago comparable period.
Financials
As of Mar 31, 2017, the company's cash balance was $1,173.2 million and long-term debt (including current maturities) was $2,552.5 million. The long-term debt-to-capitalization ratio was 32.4%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one upward revision in the current quarter compared to three lower.
Rowan Companies PLC Price and Consensus
Rowan Companies PLC Price and Consensus | Rowan Companies PLC Quote
VGM Scores
At this time, Rowan Companies' stock has a subpar Growth Score of 'D', while its momentum is lagging a bit with 'F'. However, 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 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable solely for value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.