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RPC Q3 sales miss on lower wireline revenues

By Reuters News


Overview

  • U.S. oilfield services firm's Q3 revenue rose 1% but slightly missed analyst expectations

  • Adjusted net income for Q3 missed analyst expectations

  • Q3 included $74.5 mln impairment charges tied to Pintail wireline business weakness


Outlook

  • Company says current oil prices support a more favorable operating environment

  • RPC expects continued cost pressures, especially in labor, trucking and fuel

  • Company says drilling and completion activity has improved, resulting in higher customer activity levels


Result Drivers

  • SERVICE LINE MIX - Co said higher activity in Coiled Tubing, Nitrogen and Snubbing drove Technical Services segment growth, while lower Wireline revenues offset gains

  • RENTAL TOOLS - Support Services segment revenue rose 3% sequentially, led by increased activity in Rental Tools

  • COST PRESSURES - Co said inflation in labor, trucking and fuel continued to create cost pressures


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$467.74 mln

$471.40 mln (4 Analysts)

Q3 Adjusted Net Income

Miss

$22.80 mln

$23.15 mln (4 Analysts)

Q3 Net Loss

$41.93 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy."

  • Wall Street's median 12-month price target for RPC Inc is $6.00, about 10.8% below its October 28 closing price of $6.73

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Oct 28 - Oilfield services firms lean on Middle East rebound but risks persist

  • Oct 27 - Nabors Q3 revenue beats estimates

  • Oct 28 - Patterson-UTI Q3 revenue beats on strong US drilling demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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