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%.
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%.
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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%.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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