Rowan Earnings Cheat Sheet: Quarterly Results Short of Expectations

S&P 500 (NYSE:SPY) component Rowan Companies Inc. (NYSE:RDC) posted a decrease in profit as revenue declined. Rowan Companies Inc. 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. fell to $32.1 million (25 cents/share) vs. $64.6 million (56 cents/share) a year earlier. A decline of 50.3% from the year earlier quarter.

Revenue: Fell 15.8% to $364.3 million YoY.

Actual vs. Wall St. Expectations: RDC fell short of the mean analyst estimate of 28 cents/share. Estimates ranged from 9 cents per share to 42 cents per share.

Quoting Management: Matt Ralls, President and Chief Executive Officer, commented, “Our outlook for 2011 remains positive across all three of our businesses. Although our first quarter results fell short of expectations, the underperformance related mainly to delayed shipments at LeTourneau and some non-recurring expense items in our offshore drilling business. We expect improvements in utilization and day rates in 2011 for both our offshore and land rigs. At LeTourneau, the mining business continues to be strong, and the drilling products businesses are strengthening.”

Key Stats: A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases. Revenue 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.

Net income has dropped 25.5% year over year on average across the last five quarters. Performance was hurt by a 50.9% decline in the first quarter of the last fiscal year from the year earlier quarter.

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 Performance: Shares of RDC are closed at $38.73, down 4.44% from the previous closing price of $40.53.


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