RPC Whiffs on Revenues

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RPC (NYS: RES) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RPC whiffed on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share grew significantly.

Margins contracted across the board.

Revenue details
RPC reported revenue of $483 million. The four analysts polled by S&P Capital IQ expected to see revenue of $538 million. Sales were 47% higher than the prior-year quarter's $328 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.51. The seven earnings estimates compiled by S&P Capital IQ predicted $0.63 per share on the same basis. GAAP EPS of $0.50 for Q4 were 32% higher than the prior-year quarter's $0.38 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.4%, 240 basis points worse than the prior-year quarter. Operating margin was 25.5%, 120 basis points worse than the prior-year quarter. Net margin was 15.4%, 150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $567 million. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $2.3 billion. The average EPS estimate is $2.60.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 407 members out of 428 rating the stock outperform, and 21 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give RPC a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RPC is outperform, with an average price target of $27.00.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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