Advertisement
UK markets open in 6 hours 10 minutes

  • NIKKEI 225

    37,343.23
    -736.47 (-1.93%)
     

  • HANG SENG

    16,385.87
    +134.03 (+0.82%)
     

  • CRUDE OIL

    82.48
    -0.25 (-0.30%)
     

  • GOLD FUTURES

    2,391.50
    -6.50 (-0.27%)
     

  • DOW

    37,775.38
    +22.07 (+0.06%)
     

  • Bitcoin GBP

    50,675.29
    +1,321.37 (+2.68%)
     

  • CMC Crypto 200

    1,305.18
    +419.64 (+47.06%)
     

  • NASDAQ Composite

    15,601.50
    -81.87 (-0.52%)
     

  • UK FTSE All Share

    4,290.02
    +17.00 (+0.40%)
     
Money:

Best mortgage deals of the week

As possibility of multiple interest rate cuts dwindle here's what banks and building societies are offering

RPC (RES) Q3 Earnings Miss on Low Pressure Pumping Activities

Zacks Equity Research

RPC Inc’s RES third-quarter 2019 loss of 8 cents was wider than the Zacks Consensus Estimate of a loss of a cent. In the year-ago quarter, the company reported earnings of 19 cents per share.

Total revenues of $293.2 million missed the Zacks Consensus Estimate of $345 million. Moreover, the top line declined from the year-ago $440 million.

The weak third-quarter results can primarily be attributed to lower contributions from pressure pumping activities — the company’s biggest service line.

Segmental Performance

Operating loss at the Technical Services segment totaled $18.2 million against the year-ago profit level of $56.2 million. The underperformance was led by weak activities and pricing associated to pressure pumping operations.

ADVERTISEMENT

Operating profit for the Support Services segment came in at $1.6 million, down from $1.8 million a year ago. Lower services and activities associated to the rental tool service line hurt the segment.

Cost and Expenses

Cost of revenues contracted from $300.9 million in third-quarter 2018 to $225.2 million due to a decline in expenses associated to materials and supplies.

Financials

RPC’s total capital expenditure in the September quarter of 2019 amounted to $77 million. As of Sep 30, the company had cash and cash equivalents of $49.5 million and no long-term debt.

Outlook

The slowdown in drilling activities in U.S. resources and persistent weakness in crude prices have hurt demand for oilfield services. The company expects the weakness to continue in the near term.

Zacks Rank & Stocks to Consider

RPC currently carries a Zacks Rank #5 (Strong Sell). Meanwhile, a few better-ranked players in the energy space are Crescent Point Energy Corp. CPG, Matrix Service Company MTRX and Pembina Pipeline Corporation PBA. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.    

Crescent beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 235.1%.

Matrix Service has managed to beat the Zacks Consensus Estimate for earnings in three of the past four quarters.

Pembina Pipeline has an average positive earnings surprise of 28.1% for the past four quarters.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Matrix Service Company (MTRX) : Free Stock Analysis Report
 
Crescent Point Energy Corporation (CPG) : Free Stock Analysis Report
 
RPC, Inc. (RES) : Free Stock Analysis Report
 
Pembina Pipeline Corp. (PBA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research