Parker Drilling Company Earnings: Tops Analysts’ Expectations

Parker Drilling Company (NYSE:PKD) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for Parker Drilling Company rose to $26.4 million (22 cents per share) vs. $4.8 million (4 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 13.1% to $176.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Parker Drilling Company beat the mean analyst estimate of 17 cents per share. It fell short of the average revenue estimate of $187.9 million.

Quoting Management: “Parker’s first quarter results demonstrate the strength and durability of our business strategy and success in adapting to the effects of declining U.S. natural gas prices,” said Parker Drilling Chairman, President and Chief Executive Officer, Robert Parker Jr. “We produced solid year-to-year revenue and earnings growth this quarter through effective responses to the diverging trends in oil and gas prices in North America and the uneven growth in international E&P spending. This led to the sixth consecutive quarter of year-to-year increases in the Company’s quarterly adjusted EBITDA and net income, excluding non-routine items. Our Rental Tools segment continued to grow, serving the increased need for premium drill pipe in shale plays with an expanded inventory while dynamically repositioning our equipment in response to the shifting focus of U.S. drilling activity. The U.S. Barge Drilling segment’s performance reflects increased drilling for oil and gas liquids in the shallow water of the U.S. Gulf of Mexico. Our International Drilling segment benefited from improved activity in several of the markets we serve and an increase in the number of O&M projects.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by 5 cents in the third quarter of the last fiscal year, and by 6 cents in the second quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 4.5% to $181.1 million in the fourth quarter of the last fiscal year. The figure rose 2.7% in the third quarter of the last fiscal year from the year earlier and climbed 10.4% in the second quarter of the last fiscal year from the year-ago quarter.

After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $20.7 million, or 18 cents per share, in the third quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the second quarter has risen to 18 cents per share from 17 cents. For the fiscal year, the average estimate has moved up from 68 cents a share to 73 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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