Helmerich & Payne Increases Sales but Misses Estimates on Earnings

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Helmerich & Payne (NYS: HP) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), Helmerich & Payne beat expectations on revenue and missed estimates on earnings per share.

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


Gross margin dropped, operating margin dropped, and net margin expanded.

Revenue details
Helmerich & Payne tallied revenue of $770.0 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $742.2 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $604.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.13. The 22 earnings estimates compiled by S&P Capital IQ forecast $1.21 per share. GAAP EPS of $1.18 for Q2 were 30% higher than the prior-year quarter's $0.91 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.8%, 190 basis points worse than the prior-year quarter. Operating margin was 25.9%, 60 basis points worse than the prior-year quarter. Net margin was 16.8%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $770.9 million. On the bottom line, the average EPS estimate is $1.27.

Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $5.08.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,000 members out of 1,074 rating the stock outperform, and 74 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 205 give Helmerich & Payne a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Helmerich & Payne is outperform, with an average price target of $67.96.

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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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