Oilfield services company RPC (NYSE:RES) will be announcing earnings results this Thursday before market open. Here’s what to look for.
RPC met analysts’ revenue expectations last quarter, reporting revenues of $425.8 million, up 27% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
Is RPC a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RPC’s revenue to grow 20.3% year on year, a reversal from the 11.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RPC has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at RPC’s peers in the oilfield services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. World Kinect delivered year-on-year revenue growth of 2.5%, beating analysts’ expectations by 10.4%, and Noble Corporation reported a revenue decline of 10.2%, topping estimates by 6.8%. World Kinect traded up 10.9% following the results while Noble Corporation was also up 8.2%.
Read our full analysis of World Kinect’s results here and Noble Corporation’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 5.2% on average over the last month. RPC is up 14.4% during the same time and is heading into earnings with an average analyst price target of $6.44 (compared to the current share price of $7.80).
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