RPC (NYSE:RES) Issues Earnings Results

RPC (NYSE:RES) released its quarterly earnings results on Thursday. The oil and gas company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.04 by $0.04, Zacks reports. RPC had a return on equity of 4.82% and a net margin of 1.20%.During the same period in the prior year, the company posted $0.08 EPS. The company’s revenue for the quarter was up 9.5% on a year-over-year basis.

Here are the key takeaways from RPC’s conference call:

• Second-quarter results improved sequentially: Revenue rose 1% to $461 million, while adjusted EBITDA increased to $66 million from $53.5 million and adjusted EBITDA margin expanded 250 basis points to 14.3%, supported by better job mix, modest pricing gains and operating leverage.
• RPC’s differentiated technology businesses showed momentum, with ThruTubing Solutions revenue up 10% and Cudd Pressure Control revenue up 8%; MetalMax, UnPlug and longer-lateral applications are expanding the addressable market for downhole tools.
• The company is accelerating targeted coiled-tubing investments, expecting three 2 7/8-inch-capable units by year-end, while maintaining a strong liquidity position with approximately $180 million of cash, only $30 million of notes payable and no revolver borrowings.
• Industry activity remains subdued and management does not expect a significant near-term improvement; wireline revenue fell 16% sequentially amid customer activity reductions and aggressive competitor pricing, while pressure pumping revenue declined 1% and no fleets are planned for reactivation at current market levels.
• CEO Ben Palmer plans to retire and leave the board by the end of 2026, with a successor search expected to conclude before year-end; Palmer will remain in an advisory role to support the transition.

RPC Price Performance

Shares of NYSE:RES traded up $0.28 during midday trading on Thursday, reaching $5.41. 936,342 shares of the company’s stock were exchanged, compared to its average volume of 2,133,896. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.61 and a current ratio of 3.13. The firm has a market capitalization of $1.20 billion, a PE ratio of 60.09 and a beta of 0.64. RPC has a 12 month low of $4.18 and a 12 month high of $8.16. The company’s 50 day simple moving average is $6.27 and its two-hundred day simple moving average is $6.48.

Institutional Investors Weigh In On RPC

A number of hedge funds and other institutional investors have recently bought and sold shares of RES. EverSource Wealth Advisors LLC grew its holdings in shares of RPC by 220.6% during the second quarter. EverSource Wealth Advisors LLC now owns 6,533 shares of the oil and gas company’s stock worth $31,000 after purchasing an additional 4,495 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in RPC by 243.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,681 shares of the oil and gas company’s stock worth $41,000 after buying an additional 6,153 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new stake in RPC during the 4th quarter worth about $48,000. CIBC Asset Management Inc acquired a new stake in RPC in the 4th quarter valued at about $67,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of RPC in the third quarter worth about $72,000. 41.06% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

RES has been the topic of several research analyst reports. Susquehanna dropped their target price on RPC from $7.50 to $6.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of RPC in a report on Friday, July 10th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, RPC currently has an average rating of “Reduce” and a consensus price target of $5.33.

RPC Company Profile

RPC, Inc (NYSE: RES) provides essential equipment and services to companies engaged in the exploration, production and maintenance of oil and natural gas wells. The firm operates as an equity interest holding company, partnering with a network of independent service businesses to deliver a comprehensive suite of offerings for well completion and production operations.

Through its affiliated service companies, RPC offers pressure pumping and fracturing services, coiled tubing and nitrogen pumping, downhole tools and telemetry solutions, well intervention and workover services, along with rental tools and supply-chain logistics.