Rowan Companies Inc. Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Rowan Companies Inc. (NYSE:RDC) reported net income above Wall Street’s expectations for the first quarter. Rowan Companies provides international and domestic contract drilling services, as well as equipment for the drilling, mining and timber industries.

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Rowan Companies Earnings Cheat Sheet for the First Quarter

Results: Net income for Rowan Companies Inc. rose to $49.5 million (40 cents per share) vs. $32.1 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 54.3% from the year-earlier quarter.

Revenue: Rose 61.9% to $333.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rowan Companies Inc. beat the mean analyst estimate of 34 cents per share. It beat the average revenue estimate of $315.1 million.

Quoting Management: Matt Ralls, President and Chief Executive Officer, commented, “During the first quarter, we continued to see solid demand and increasing day rates for high specification jack-ups in most markets. We were pleased to increase our Southeast Asia presence with commitments for two additional rigs, which will bring us to four rigs in the region. Despite the short-term impact of rig relocations on operating results, we will continue to opportunistically redeploy our assets to maximize long-term returns.

Key Stats:

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 32 cents versus a mean estimate of net income of 31 cents per share.

Last quarter’s profit increase comes after net income dropped in the prevoius quarter. In the fourth quarter of the last fiscal year, net income declined 21.3% to $45.1 million.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 86 cents a share to 69 cents over the last ninety days. At $2.61 per share, the average estimate for the fiscal year has fallen from $3.33 ninety days ago.

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

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