Parker Drilling Company Earnings: Increased Profit Helps Beat the Street

Parker Drilling Company (NYSE:PKD) reported net income above Wall Street’s expectations for the third quarter. Parker Drilling provides land and offshore contract drilling services and rental tools on a worldwide basis to independent and national oil and gas companies and integrated service providers.

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Parker Drilling Company Earnings Cheat Sheet for the Third Quarter

Results: Net income for the oil and gas drilling and exploration company rose to $20.6 million (18 cents per share) vs. $492,000 (0 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 2.7% to $176.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PKD beat the mean analyst estimate of 13 cents per share. It fell short of the average revenue estimate of $182.6 million.

Quoting Management: “Our third quarter performance reflects the continued growth of North American rental tool demand, further strengthening of the Gulf of Mexico barge drilling market, developing improvements in some international areas and additional project management revenues,” said Parker Drilling President and Chief Executive Officer, David Mannon. “We achieved these results through our ongoing commitment to meet customers’ growing need for drill pipe, to align our barge rig fleet availability with customers’ drilling intentions, and to provide performance-oriented drilling solutions for selected international opportunities.”

Key Stats:
The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 14 cents versus a mean estimate of net income of 8 cents per share.
The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 10.4% to $172.8 million from the year earlier quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 15 cents per share, up from 11 cents ninety days ago. For the fiscal year, the average estimate has moved up from 32 cents a share to 46 cents over the last ninety days.

Competitors to Watch: Pioneer Drilling Company (AMEX:PDC), Rowan Companies, Inc. (NYSE:RDC), Pride International, Inc. (NYSE:PDE), Helmerich & Payne, Inc. (NYSE:HP), Atwood Oceanics, Inc. (NYSE:ATW), Patterson-UTI Energy, Inc. (NASDAQ:PTEN), Allis-Chalmers Energy Inc. (NYSE:ALY), Hercules Offshore, Inc. (NASDAQ:HERO), Vantage Drilling Company (AMEX:VTG), and Seahawk Drilling, Inc. (NASDAQ:HAWK).

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(Source: Xignite Financials)