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RPC Inc. (RES - Free Report) has declined 19.2% since the first-quarter earnings announcement on Apr 27.
The company’s stock price slipped despite reporting a strong bottom-line number in the first quarter. The stock movement could be attributed to significantly higher year-over-year expenses, resulting from increased activity levels and inflationary effects.
Q1 Results
RPC reported adjusted earnings of 7 cents per share for the first quarter, in line with the Zacks Consensus Estimate. The bottom line compares favorably with the year-ago quarter’s loss of 5 cents.
Total quarterly revenues of $284.6 million missed the Zacks Consensus Estimate of $291 million. However, the top line significantly improved from the year-ago figure of $182.6 million.
The in-line quarterly earnings were backed by higher activity levels in all the service lines and improved pricing.
Operating profit in the Technical Services segment totaled $21.8 million against a loss of $5.8 million in the year-ago quarter. The improvement can be attributed to higher activity levels in most service lines and improved pricing.
Operating profit in the Support Services segment was $2.8 million, turning around from a year-ago loss of $2.9 million in the year-ago quarter. The upside was caused by increased activities.
Total operating profit for the quarter was $23 million, significantly improving from the year-ago loss of $10.5 million. The average domestic rig count was 636 for the March-end quarter, reflecting a 60.6% increase from the year-ago level. The average oil price for the quarter was $95.06 per barrel. The same for natural gas was $4.68 per thousand cubic feet.
Cost and Expenses
In first-quarter 2022, the cost of revenues increased from $146.2 million to $208.8 million. Selling, general and administrative expenses increased to $36.2 million from the year-ago figure of $30.6 million.
The increased cost of revenues was mainly due to higher expenses related to increased activity levels, fuel costs and others.
Financials
RPC’s total capital expenditure for the March-end quarter of 2022 amounted to $19.1 million.
As of Mar 31, RPC had cash and cash equivalents of $73.2 million, down sequentially from $82.4 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Outlook
For 2022, the Zack Rank #3 (Hold) company expects a capital expenditure of $115 million, indicating a significant increase from $67.6 million reported last year.
Shell plc (SHEL - Free Report) reported first-quarter earnings per ADS on a current cost of supplies basis, excluding items, of $2.38. The bottom line surpassed the Zacks Consensus Estimate of $2.12, owing to higher commodity prices.
As of Mar 31, 2022, Shell had $38.4 billion in cash and $86 billion in debt (including short-term debt). In the quarter, Shell generated cash flow from operations of $14.8 billion, returned $2 billion to its shareholders through dividends and spent $4.2 billion cash on capital projects.
BP plc (BP - Free Report) reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share (“ADS”) on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share, owing to higher realizations of commodity prices.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering the Brent crude price at $60 per barrel.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on a weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents, and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. CVX paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.
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RPC (RES) Stock Slips 19.2% Despite Reporting Q1 Earnings Meet
RPC Inc. (RES - Free Report) has declined 19.2% since the first-quarter earnings announcement on Apr 27.
The company’s stock price slipped despite reporting a strong bottom-line number in the first quarter. The stock movement could be attributed to significantly higher year-over-year expenses, resulting from increased activity levels and inflationary effects.
Q1 Results
RPC reported adjusted earnings of 7 cents per share for the first quarter, in line with the Zacks Consensus Estimate. The bottom line compares favorably with the year-ago quarter’s loss of 5 cents.
Total quarterly revenues of $284.6 million missed the Zacks Consensus Estimate of $291 million. However, the top line significantly improved from the year-ago figure of $182.6 million.
The in-line quarterly earnings were backed by higher activity levels in all the service lines and improved pricing.
RPC, Inc. Price, Consensus and EPS Surprise
RPC, Inc. price-consensus-eps-surprise-chart | RPC, Inc. Quote
Segmental Performance
Operating profit in the Technical Services segment totaled $21.8 million against a loss of $5.8 million in the year-ago quarter. The improvement can be attributed to higher activity levels in most service lines and improved pricing.
Operating profit in the Support Services segment was $2.8 million, turning around from a year-ago loss of $2.9 million in the year-ago quarter. The upside was caused by increased activities.
Total operating profit for the quarter was $23 million, significantly improving from the year-ago loss of $10.5 million. The average domestic rig count was 636 for the March-end quarter, reflecting a 60.6% increase from the year-ago level. The average oil price for the quarter was $95.06 per barrel. The same for natural gas was $4.68 per thousand cubic feet.
Cost and Expenses
In first-quarter 2022, the cost of revenues increased from $146.2 million to $208.8 million. Selling, general and administrative expenses increased to $36.2 million from the year-ago figure of $30.6 million.
The increased cost of revenues was mainly due to higher expenses related to increased activity levels, fuel costs and others.
Financials
RPC’s total capital expenditure for the March-end quarter of 2022 amounted to $19.1 million.
As of Mar 31, RPC had cash and cash equivalents of $73.2 million, down sequentially from $82.4 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Outlook
For 2022, the Zack Rank #3 (Hold) company expects a capital expenditure of $115 million, indicating a significant increase from $67.6 million reported last year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Players’ Q1 Results
Shell plc (SHEL - Free Report) reported first-quarter earnings per ADS on a current cost of supplies basis, excluding items, of $2.38. The bottom line surpassed the Zacks Consensus Estimate of $2.12, owing to higher commodity prices.
As of Mar 31, 2022, Shell had $38.4 billion in cash and $86 billion in debt (including short-term debt). In the quarter, Shell generated cash flow from operations of $14.8 billion, returned $2 billion to its shareholders through dividends and spent $4.2 billion cash on capital projects.
BP plc (BP - Free Report) reported first-quarter 2022 adjusted earnings of $1.92 per American Depositary Share (“ADS”) on a replacement-cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of $1.41 per share, owing to higher realizations of commodity prices.
BP announced plans to execute a $2.5-billion share buyback, which is expected to complete before reporting the second-quarter results. The company anticipates buying back $1 billion worth of shares every quarter, considering the Brent crude price at $60 per barrel.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share of $3.36, missing the Zacks Consensus Estimate of $3.44 on a weaker-than-expected performance from the downstream segment.
As of Mar 31, Chevron had $11.7 billion in cash and cash equivalents, and total debt of $29.3 billion, with a debt-to-total capitalization of 16.7%. CVX paid out $2.7 billion in dividends and bought back $1.3 billion worth of its shares.