Helmerich & Payne Earnings: Everything You Must Know Now

Helmerich & Payne Inc. (NYSE:HP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Helmerich & Payne Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.11% to $1.44 in the quarter versus EPS of $1.37 in the year-earlier quarter.

Revenue: Rose 2.49% to $840.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Helmerich & Payne Inc. reported adjusted EPS income of $1.44 per share. By that measure, the company beat the mean analyst estimate of $1.34. It missed the average revenue estimate of $844.15 million.

Quoting Management: Chairman and CEO Hans Helmerich commented, “In light of the challenging rig market, we are pleased with the strong quarterly results corresponding to our drilling operations. Also during the most recent quarter, the Board approved a significant increase in dividends paid to shareholders. After doubling the dividend at the end of last year, in June the dividend was increased again from $0.15 to $0.50 per share per quarter. We are confident that our strong capital structure allows us to pursue growth opportunities and, at the same time, return meaningful cash to shareholders. Relatedly, we previously announced that the Company had sold 4,000,000 shares of Atwood, representing one-half of our position at a substantial gain. That sale fit well with our stated intention to rationalize our equity over a period of time. That said, we have no immediate plans for further sales at this time. So far this year, E&P spending has been disciplined in the general anticipation that oil prices would trend lower. Instead, prices have moved well above $100 per barrel and may well drive an increase in levels of FlexRig(NYSE:R)* demand. We are in excellent position to quickly respond to improving market conditions and continue to expect the rig fleet replacement cycle to provide H&P with growth opportunities. Our focus will remain on helping customers reduce their total well costs through applied innovations and productivity improvements, while at the same time delivering attractive returns to our shareholders.”

Key Stats (on next page)…

Revenue increased 0.23% from $838.31 million in the previous quarter. EPS increased 5.88% from $1.36 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.36 to a profit $1.35. For the current year, the average estimate has moved up from a profit of $5.42 to a profit of $5.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)