S&P 500 (NYSE:SPY) component Rowan Companies, Inc. (NYSE:RDC) will unveil its latest earnings on Tuesday, February 28, 2012. Rowan Companies provides international and domestic contract drilling services, as well as equipment for the drilling, mining and timber industries.
Rowan Companies, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 32 cents per share, a decline of 23.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 46 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 34 cents during the last month. Analysts are projecting profit to rise by 54.1% versus last year to $1.19.
Past Earnings Performance: Last quarter, the company fell short of estimates by 5 cents, coming in at net income of 25 cents per share against a mean estimate of profit of 39 cents. The company topped expectations in the second quarter.
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Wall St. Revenue Expectations: On average, analysts predict $270.3 million in revenue this quarter, a decline of 41.1% from the year-ago quarter. Analysts are forecasting total revenue of $1.11 billion for the year, a decline of 39% from last year’s revenue of $1.82 billion.
Analyst Ratings: Analysts are bullish on this stock, with 14 analysts rating it as a buy, one rating it as a sell and seven rating it as a hold.
A Look Back: In the third quarter, profit rose more than twofold to $193.8 million ($1.53 a share) from $67.2 million (57 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 46.4% to $234.7 million from $437.9 million.
For three quarters in a row, revenue has declined. Revenue fell 54.4% in second quarter from the year earlier and 15.8% in the first quarter.
The company has reported a profit in each of the last eight quarters. In the last four, profit has increased year-over-year by an average of more than twofold. The quarter with the greatest jump was the second quarter, which saw a surge of a more than fivefold.
Stock Price Performance: Between November 23, 2011 and February 22, 2012, the stock price rose $7.04 (22.5%), from $31.33 to $38.37. The stock price saw one of its best stretches over the last year between July 18, 2011 and July 26, 2011, when shares rose for seven straight days, increasing 8.2% (+$3) over that span. It saw one of its worst periods between July 29, 2011 and August 8, 2011 when shares fell for seven straight days, dropping 22.1% (-$8.64) over that span.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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