Parker Drilling Earnings Cheat Sheet: Increased Profit Helps Beat the Street

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

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Parker Drilling Company Earnings Cheat Sheet for the Second Quarter

Results: Net income for the oil and gas drilling and exploration company rose to $14.2 million (12 cents per share) vs. $507,000 (0 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 10.4% to $172.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: PKD reported adjusted net income of 14 cents per share. By that measure, the company beat the mean estimate of 8 cents per share. It beat the average revenue estimate of $157.3 million.

Quoting Management: “Our second quarter performance was led by the continued strong growth of our Rental Tools segment, accompanied by benefits from a substantial improvement in our U.S. barge drilling business and an expanded portfolio of projects in the Project Management and Engineering Services segment. This was the result of better market conditions leveraged by the growth- and profitability-focused strategies of our operations,” stated Parker Drilling President and Chief Executive Officer David Mannon. “In addition, we achieved stability in our International Drilling business and continued to work on strengthening the operational potential of this business,” said Mannon.

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the second quarter of the last fiscal year, which saw a 29.4% decrease.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by one cent, and in the fourth quarter of the last fiscal year, it fell short by 4 cents.

Gross margins grew 11.8 percentage points to 23.7%. The growth seemed to be driven by increased revenue, as the figure rose 10.4% from the year earlier quarter while costs fell 4.4%.

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)

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