We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RPC (RES) to Post Q3 Earnings: Disappointment in the Cards?
Read MoreHide Full Article
RPC, Inc. (RES - Free Report) is set to release third-quarter 2019 results before the opening bell on Oct 23, 2019.
In the last reported quarter, the company’s earnings of 3 cents per share missed the Zacks Consensus Estimate by a penny due to lower contributions from pressure pumping — its biggest service line.
As far as earnings surprises are concerned, the Atlanta, GA-based company failed to beat the Zacks Consensus Estimate for earnings in each of the last four reported quarters, recording a negative earnings surprise of 45.60%.
Let’s see how things are shaping up for this announcement.
Which Way are Estimates Trending?
Let’s take a look at estimate revisions to get a clear picture of what analysts are thinking about the company before the earnings release.
The Zacks Consensus Estimate of a loss of 1 cent per share for the third quarter has declined from earnings of 1 cent over the past 30 days. This indicates a decline of almost 105.3% from the year-ago quarter.
Further, the Zacks Consensus Estimate for revenues of $342.7 million suggests a 22.1% drop from the prior-year quarter.
Factors to Consider
In the recently completed third quarter, intensified competition in the domestic market left limited room for oilfield services companies to charge premium prices for the services offered. Moreover, slowdown of demand for pressure pumping services in shale plays is expected to be reflected in the to-be-reported quarter’s results. The Zacks Consensus Estimate for revenues from the Technical Services segment is pegged at $313 million, indicating a decline from $421 million in the year-ago period. Moreover, the Zacks Consensus Estimate for operating profit from the segment is pegged at $0.2 million, suggesting a fall from $56 million in the year-ago quarter.
However, the Zacks Consensus Estimate for the Support Services segment’s revenues is pegged at $20 million, implying an improvement from $18.7 million in the year-ago period. Moreover, the Zacks Consensus Estimate for the segment’s operating profit is pegged at $2.6 million, pointing to growth from $1.8 million in the year-ago quarter. The segment includes the company’s services and equipment, which are expected to have performed well, off the site of oil and gas wells.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for RPC in the quarter to be reported. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Earnings ESP: Earnings ESP represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. RPC’s Earnings ESP is pegged at -50.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: RPC has a Zacks Rank #4 (Sell).
Energy Stocks With Favorable Combination
While earnings beat looks uncertain for RPC, here are some companies from the energy space that you may want to consider on the basis of our model, which shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Phillips 66 (PSX - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank of 3. The company is slated to announce third-quarter 2019 earnings on Oct 25.
Plains All American Pipeline, L.P. (PAA - Free Report) has an Earnings ESP of +17.20% and is a #3 Ranked player. The company is scheduled to release third-quarter 2019 earnings on Nov 5.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
RPC (RES) to Post Q3 Earnings: Disappointment in the Cards?
RPC, Inc. (RES - Free Report) is set to release third-quarter 2019 results before the opening bell on Oct 23, 2019.
In the last reported quarter, the company’s earnings of 3 cents per share missed the Zacks Consensus Estimate by a penny due to lower contributions from pressure pumping — its biggest service line.
As far as earnings surprises are concerned, the Atlanta, GA-based company failed to beat the Zacks Consensus Estimate for earnings in each of the last four reported quarters, recording a negative earnings surprise of 45.60%.
RPC, Inc. Price and EPS Surprise
RPC, Inc. price-eps-surprise | RPC, Inc. Quote
Let’s see how things are shaping up for this announcement.
Which Way are Estimates Trending?
Let’s take a look at estimate revisions to get a clear picture of what analysts are thinking about the company before the earnings release.
The Zacks Consensus Estimate of a loss of 1 cent per share for the third quarter has declined from earnings of 1 cent over the past 30 days. This indicates a decline of almost 105.3% from the year-ago quarter.
Further, the Zacks Consensus Estimate for revenues of $342.7 million suggests a 22.1% drop from the prior-year quarter.
Factors to Consider
In the recently completed third quarter, intensified competition in the domestic market left limited room for oilfield services companies to charge premium prices for the services offered. Moreover, slowdown of demand for pressure pumping services in shale plays is expected to be reflected in the to-be-reported quarter’s results. The Zacks Consensus Estimate for revenues from the Technical Services segment is pegged at $313 million, indicating a decline from $421 million in the year-ago period. Moreover, the Zacks Consensus Estimate for operating profit from the segment is pegged at $0.2 million, suggesting a fall from $56 million in the year-ago quarter.
However, the Zacks Consensus Estimate for the Support Services segment’s revenues is pegged at $20 million, implying an improvement from $18.7 million in the year-ago period. Moreover, the Zacks Consensus Estimate for the segment’s operating profit is pegged at $2.6 million, pointing to growth from $1.8 million in the year-ago quarter. The segment includes the company’s services and equipment, which are expected to have performed well, off the site of oil and gas wells.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for RPC in the quarter to be reported. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Earnings ESP: Earnings ESP represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. RPC’s Earnings ESP is pegged at -50.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: RPC has a Zacks Rank #4 (Sell).
Energy Stocks With Favorable Combination
While earnings beat looks uncertain for RPC, here are some companies from the energy space that you may want to consider on the basis of our model, which shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Noble Corporation plc (NE - Free Report) is set to report third-quarter 2019 earnings on Oct 30. The stock has an Earnings ESP of +1.92% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
Phillips 66 (PSX - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank of 3. The company is slated to announce third-quarter 2019 earnings on Oct 25.
Plains All American Pipeline, L.P. (PAA - Free Report) has an Earnings ESP of +17.20% and is a #3 Ranked player. The company is scheduled to release third-quarter 2019 earnings on Nov 5.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>