Oilfield services firm RPC Q3 revenue beats analyst expectations

Reuters
Oct 30
Oilfield services firm RPC Q3 revenue beats analyst expectations

Overview

  • RPC Q3 revenue rose 6% sequentially to $447.1 mln, beating analyst expectations

  • Adjusted EPS for Q3 was $0.09, exceeding analyst estimates

  • Company anticipates Q4 challenges due to lower oil prices and holiday slowdowns

Outlook

  • RPC expects oilfield services market to face headwinds due to oil prices below $60/barrel

  • Company plans incremental cost reductions amid challenging market conditions

  • RPC to invest prudently, focusing on full cycle returns

Result Drivers

  • PRESSURE PUMPING - Revenue increased 14% sequentially, driven by recovery from a soft second quarter

  • COILED TUBING - 19% increase supported by deployment of a new large diameter unit

  • DOWNHOLE TOOLS - Strong demand due to new product introductions

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$447.10 mln

$406.20 mln (4 Analysts)

Q3 Adjusted EPS

Beat

$0.09

$0.07 (6 Analysts)

Q3 Adjusted Net Income

Beat

$18.40 mln

$15.90 mln (5 Analysts)

Q3 Net Income

$12.96 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "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 $5.50, about 9.1% above its October 29 closing price of $5.00

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn2GgTSCa

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(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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