Rowan Companies Inc. Earnings Cheat Sheet: Profit Climbs

S&P 500 (NYSE:SPY) component Rowan Companies Inc. (NYSE:RDC) reported a sharp profit boost in the third 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 Third Quarter

Results: Net income for Rowan Companies Inc. rose to $193.8 million ($1.53 per share) vs. $67.2 million (57 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Fell 2% to $234.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RDC reported income from continuing operations of 25 cents a share. By that measure, it fell short of the mean analyst estimate of 39 cents per share. It fell short of the average revenue estimate of $249.8 million.

Quoting Management: Matt Ralls, President and Chief Executive Officer, commented, “Our financial performance during the third quarter was negatively impacted by the effects of rig moves and upgrades as we prepared for several new contracts. During the quarter, we had nine rigs moving to or preparing for new contracts and several of those projects took longer than anticipated. The combined effect of being off day rate longer than expected and the higher repair and maintenance expense that accompanies most upgrade projects hurt our third quarter performance and will have an impact on the fourth quarter as well, after which all of those nine rigs are expected to be on contract.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 72 cents a share to 66 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.81 a share to $1.71 over the last sixty days.

Competitors to Watch: Pride International, Inc. (NYSE:PDE), Atwood Oceanics, Inc. (NYSE:ATW), Hercules Offshore, Inc. (NASDAQ:HERO), Diamond Offshore Drilling, Inc. (NYSE:DO), Vantage Drilling Company (AMEX:VTG), Seahawk Drilling, Inc. (NASDAQ:HAWK), Helmerich & Payne, Inc. (NYSE:HP), Parker Drilling Company (NYSE:PKD), Patterson-UTI Energy, Inc. (NASDAQ:PTEN), and Pioneer Drilling Company (AMEX:PDC).

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(Source: Xignite Financials)