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.
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.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
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.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
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.
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.
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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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 of Motley 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.