Rowan Companies Earnings: Here’s Why Investors are Ambivalent Now

Rowan Companies Inc. (NYSE:RDC) 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. .

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Rowan Companies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.02% to $0.55 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Rose 18.21% to $394.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rowan Companies Inc. reported adjusted EPS income of $0.55 per share. By that measure, the company beat the mean analyst estimate of $0.53. It beat the average revenue estimate of $386.49 million.

Quoting Management: Matt Ralls, Chief Executive Officer, commented, “We are pleased with our first quarter operating results and remain confident that we are well positioned strategically as we celebrate Rowan’s 90th anniversary this month. We continue to see strengthening in the jack-up markets, especially for high-spec rigs, along with strong demand and encouraging new fixtures in the ultra-deepwater markets. We expect our focus on operational execution and the earnings power from our newbuild drillships and higher jack-up day rates to lead to strong earnings increases in 2014 and beyond.”

Key Stats (on next page)…

Revenue increased 11.29% from $354.2 million in the previous quarter. EPS increased 25% from $0.44 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 $0.62 to a profit $0.65. For the current year, the average estimate has moved down from a profit of $2.42 to a profit of $2.18 over the last ninety days.

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