Parker Drilling Company Third Quarter Earnings Sneak Peek

Parker Drilling Company (NYSE:PKD) will unveil its latest earnings on Thursday, November 1, 2012. 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.

Parker Drilling Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 11 cents per share, a decline of 38.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 18 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 12 cents during the last month. For the year, analysts are projecting profit of 59 cents per share, a rise of 9.3% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported net income of 18 cents per share versus a mean estimate of profit of 19 cents per share. In the first quarter, the company beat estimates by 5 cents.

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A Look Back: In the second quarter, profit rose 41.7% to $20.1 million (17 cents a share) from $14.2 million (12 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 3.5% to $178.9 million from $172.8 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.07 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Stock Price Performance: Between August 30, 2012 and October 26, 2012, the stock price had risen 26 cents (6.4%), from $4.07 to $4.33. The stock price saw one of its best stretches over the last year between June 26, 2012 and July 3, 2012, when shares rose for six straight days, increasing 14.1% (+60 cents) over that span. It saw one of its worst periods between August 16, 2012 and August 30, 2012 when shares fell for 11 straight days, dropping 16.1% (-78 cents) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 2.7% in the third quarter of the last fiscal year, 4.5% in the fourth quarter of the last fiscal year and 13.1% in the first quarter before increasing again in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $168.7 million in revenue this quarter, a decline of 4.5% from the year-ago quarter. Analysts are forecasting total revenue of $688.6 million for the year, a rise of 0.3% from last year’s revenue of $686.6 million.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

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

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