Rowan Companies, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Rowan Companies, Inc. (NYSE:RDC) will unveil its latest earnings on Tuesday, August 2, 2011. Rowan Companies Inc. provides international and domestic contract drilling services as well as equipment for the drilling, mining and timber industries.

Rowan Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 34 cents per share, a decline of 57% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down and dropped from 41 cents during the last month. For the year, analysts are projecting profit of $1.88 per share, a decline of 27.4% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of 24 cents per share versus a mean estimate of profit of 30 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 13 cents.

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Wall St. Revenue Expectations: On average, analysts predict $278.9 million in revenue this quarter, a decline of 43.1% from the year ago quarter. Analysts are forecasting total revenue of $1.35 billion for the year, a decline of 25.8% from last year’s revenue of $1.82 billion.

Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, one rating it as a sell and eight rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 15.8% in the first quarter and rose 14.8%in the fourth quarter of the last fiscal year, 11.3% in the third quarter of the last fiscal year and 1.6% in the second quarter of the last fiscal year.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 19.1% over the past four quarters. The quarter hit the hardest was the most recent quarter, that saw a 50.4% drop.

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).

Stock Price Performance: During May 2, 2011 to July 27, 2011, the stock price had fallen $1.84 (-4.5%) from $40.53 to $38.69. The stock price saw one of its best stretches over the last year between July 18, 2011 and July 26, 2011 when shares rose for seven-straight days, rising 8.2% (+$3) over that span. It saw one of its worst periods between January 14, 2011 and January 25, 2011 when shares fell for seven-straight days, falling 6.2% (-$2.17) over that span. Shares are up $3.78 (+10.8%) year to date.

(Source: Xignite Financials)

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