Parker Drilling Earnings: Here’s Why Investors are Selling Shares Now

Parker Drilling Co. (NYSE:PKD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.14%.

Parker Drilling Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 22.22% to $0.14 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Rose 26.31% to $226 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Parker Drilling Co. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.07. It beat the average revenue estimate of $220.4 million.

Quoting Management: “The strength of our second quarter results reflects the operational gains we are achieving in many areas of our business,” said Gary Rich, president and chief executive officer of Parker Drilling. “In addition, the acquisition of ITS adds an established international presence to our successful rental tools business and provides further opportunities for profitable growth.”

Key Stats (on next page)…

Revenue increased 35.2% from $167.16 million in the previous quarter. EPS increased 366.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.09 to a profit $0.10. For the current year, the average estimate has moved up from a profit of $0.27 to a profit of $0.30 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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