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RPC (RES) Plunges as Q2 Earnings & Revenues Miss Estimates

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RPC Inc (RES - Free Report) reported second-quarter 2019 earnings of 3 cents per share, missing the Zacks Consensus Estimate by a penny. The bottom line declined from the year-ago level of 28 cents.

Total revenues of $359 million missed the Zacks Consensus Estimate of $363 million. Moreover, the top line declined from the year-ago $468 million.

The weak second-quarter results can primarily be attributed to lower contributions from pressure pumping activities — the company’s biggest service line. The dismal quarterly performance led to around 10% fall in the stock on NYSE.

Segmental Performance

Operating profit from the Technical Services segment totaled $6.9 million, down from the year-ago profit level of $75.6 million. The decline was mainly caused by weak activities and pricing associated to pressure pumping operations.

On the contrary, operating profit from the Support Services segment came in at $4 million, up from $1.2 million a year ago. The improvement was backed by higher pricing and enhanced activities associated to the rental tool service line.

Cost and Expenses

Cost of revenues contracted from $312.1 million in second-quarter 2018 to $265.1 million due to lower expenses of materials and supplies.

Selling, general and administrative costs rose to $43.3 million in the reported quarter from $42.5 million a year ago.

Share Repurchase

The company bought back around 539,643 outstanding shares in the June quarter of 2019.

Financials

RPC’s total capital expenditure in the second quarter of 2019 amounted to $70 million. As of Jun 30, the company had cash and cash equivalents of $47.6 million and no long-term debt.

Zacks Rank & Stocks to Consider

RPC currently carries a Zacks Rank #4 (Sell). Meanwhile, a few better-ranked players in the energy space are MPLX LP (MPLX - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) . While MPLX  sports a Zacks Rank #1 (Strong Buy), Oceaneering and Helix carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

MPLX is likely to see earnings growth of 23.6% through 2019

Oceaneering International beat the Zacks Consensus Estimate for its bottom line in the past four quarters.

Helix Energy is likely to see earnings growth of 47.4% through 2019.

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