Rowan Companies Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Rowan Companies, Inc. (NYSE:RDC) will unveil its latest earnings on Tuesday, November 1, 2011. Rowan Companies 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 41 cents per share, a decline of 28.1% 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 48 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 44 cents during the last month. Analysts are projecting profit to rise by 32.4% versus last year to $1.75.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 38 cents per share against a mean estimate of net income of 33 cents per share. In the first quarter, it missed forecasts by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $249.8 million in revenue this quarter, a decline of 43% from the year ago quarter. Analysts are forecasting total revenue of $1.14 billion for the year, a decline of 37.4% 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 six rating it as a hold.

A Look Back: In the second quarter, profit rose more than fivefold to $465.9 million ($3.65 a share) from $90.9 million (79 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 54.4% to $223.5 million from $490 million.

Key Stats:

The increase in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit decreases. Net income dropped 50.4% in the first quarter, 5.8% in the fourth quarter of the last fiscal year and 14.3% in the third quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In the first quarter, the figure fell 15.8%.

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 August 2, 2011 to October 26, 2011, the stock price had fallen $3.99 (-10.3%) from $38.78 to $34.79. 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 July 29, 2011 and August 8, 2011 when shares fell for seven-straight days, falling 22.1% (-$8.64) over that span. Shares are down 12 cents (-0.3%) year to date.

(Source: Xignite Financials)

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