The 10-second takeaway
For the quarter ended June 30 (Q2), RPC beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share didn't change.
Margins contracted across the board.
RPC reported revenue of $500.1 million. The four analysts polled by S&P Capital IQ expected to see revenue of $482.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $443.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The six earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.33 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.8%, 140 basis points worse than the prior-year quarter. Operating margin was 24.3%, 260 basis points worse than the prior-year quarter. Net margin was 14.4%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $471.6 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.87 billion. The average EPS estimate is $1.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 465 members out of 489 rating the stock outperform, and 24 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give RPC a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RPC is hold, with an average price target of $11.88.
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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.