Rowan Companies Earnings: Here’s Why Investors Like These Results

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. Shares are up 2.08%.

Rowan Companies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.76% to $0.57 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Rose 16.49% to $408.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rowan Companies Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.56. It beat the average revenue estimate of $399.62 million.

Quoting Management: Matt Ralls, Chief Executive Officer, commented, “In addition to our strong second quarter operating results, we are very pleased to have recently received contracts for our second and third ultra-deepwater newbuild drillships at attractive rates. Our backlog is at an all-time high and we are optimistic that we will have our fourth newbuild drillship contracted in the coming months. Our high-spec jack-ups continue to roll over to new contracts at higher rates, which along with earnings from our newbuild drillships should provide strong earnings growth in 2014 and 2015.”

Key Stats (on next page)…

Revenue increased 3.72% from $394.24 million in the previous quarter. EPS increased 3.64% from $0.55 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.6 to a profit $0.59. For the current year, the average estimate has moved up from a profit of $2.21 to a profit of $2.3 over the last ninety days.

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

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