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RPC's (RES) Earnings and Revenues Outpace Estimates in Q3
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RPC Inc (RES - Free Report) reported adjusted earnings of 32 cents per share in the third quarter, beating the Zacks Consensus Estimate of 25 cents. The bottom line compares favorably with the year-ago quarter’s profit of 2 cents per share.
Total quarterly revenues of $460 million beat the Zacks Consensus Estimate of $378 million. The top line significantly improved from the year-ago figure of $225 million.
The strong quarterly results were backed by higher activity levels in all the service lines and improved pricing.
Operating profit in the Technical Services segment totaled $89.5 million, higher than year-ago quarter’s profit of $8.3 million. The upside was caused by increased customer activities along with higher pricing.
Operating profit in the Support Services segment was $5.3 million, reversing from a year-ago loss of $55,000. The improvement was owing to a hike in pricing within rental tools along with increased activities.
Total operating profit in the quarter was $92.2 million, skyrocketing from $7.9 million. The average domestic rig count was 761, reflecting a 52.2% increase from the year-ago level. The average oil price in the quarter was $92.84 per barrel. The same for natural gas was $8.03 per thousand cubic feet.
Cost and Expenses
In third-quarter 2022, the cost of revenues increased from $170.6 million to $309.8 million. Selling, general and administrative expenses increased to $38.2 million from the year-ago figure of $31.5 million.
Financials
As of Sep 30, RPC had cash and cash equivalents of $35.9 million.
Zacks Rank & Other Stocks to Consider
RPC currently sports a Zacks Rank #1 (Strong Buy). Other prospective players in the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 379.4%.
The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana
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RPC's (RES) Earnings and Revenues Outpace Estimates in Q3
RPC Inc (RES - Free Report) reported adjusted earnings of 32 cents per share in the third quarter, beating the Zacks Consensus Estimate of 25 cents. The bottom line compares favorably with the year-ago quarter’s profit of 2 cents per share.
Total quarterly revenues of $460 million beat the Zacks Consensus Estimate of $378 million. The top line significantly improved from the year-ago figure of $225 million.
The strong quarterly results 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 $89.5 million, higher than year-ago quarter’s profit of $8.3 million. The upside was caused by increased customer activities along with higher pricing.
Operating profit in the Support Services segment was $5.3 million, reversing from a year-ago loss of $55,000. The improvement was owing to a hike in pricing within rental tools along with increased activities.
Total operating profit in the quarter was $92.2 million, skyrocketing from $7.9 million. The average domestic rig count was 761, reflecting a 52.2% increase from the year-ago level. The average oil price in the quarter was $92.84 per barrel. The same for natural gas was $8.03 per thousand cubic feet.
Cost and Expenses
In third-quarter 2022, the cost of revenues increased from $170.6 million to $309.8 million. Selling, general and administrative expenses increased to $38.2 million from the year-ago figure of $31.5 million.
Financials
As of Sep 30, RPC had cash and cash equivalents of $35.9 million.
Zacks Rank & Other Stocks to Consider
RPC currently sports a Zacks Rank #1 (Strong Buy). Other prospective players in the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 379.4%.
The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana