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Factors to Take Into Account Ahead of RPC's (RES) Q1 Earnings

Zacks Equity Research
·4 min read

RPC, Inc. RES is set to report first-quarter 2023 earnings results on Apr 26, before the opening bell.

In the last reported quarter, RPC’s adjusted earnings of 41 cents per share beat the Zacks Consensus Estimate of 30 cents due to higher activity levels in all the service lines and rising equipment utilization.

RPC’s bottom line beat the Zacks Consensus Estimate thrice and met the same once in the trailing four quarters, the average surprise being 46.2%. This is depicted in the graph below:

RPC, Inc. Price and EPS Surprise

 

RPC, Inc. Price and EPS Surprise
RPC, Inc. Price and EPS Surprise

RPC, Inc. price-eps-surprise | RPC, Inc. Quote

Let’s see how things have shaped up prior to this announcement.

Estimate Trend

The Zacks Consensus Estimate for the company’s first-quarter earnings per share of 41 cents has witnessed no movement in the past 30 days. The estimated figure suggests a substantial improvement from the earnings of 7 cents reported in the prior-year quarter.

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The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $495 million indicates a 73.7% improvement from the year-ago reported figure.

Factors to Note

Higher oil price was favorable for exploration and production activities in the March-end quarter. Although crude prices were high, it was not as good as a year ago. Hence, RPC’s oilfield service demand is likely to have declined. This, in turn, is likely to have affected the company’s oilfield service business.

The Zacks Consensus Estimate for the operating profit of the company’s Technical Services segment is pegged at $114 million, indicating an increase from the year-ago reported level of $21.8 million. Also, the Zacks Consensus Estimate for the operating profit of the company’s Support Services segment is pegged at $7 million, suggesting an increase from the year-ago reported level of $2.8 million.

Despite expecting higher operating profits from the company’s Technical and Support Services segments, rising costs are expected to have affected RPC’s performance in the to-be-reported quarter. This is because many companies have been forced to pay higher prices for equipment and labor, which affected their profitability.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for RPC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: RPC’s Earnings ESP is 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate both are currently pegged at earnings of 41 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: RPC currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly results:

Enterprise Products Partners L.P. EPD currently has an Earnings ESP of +3.05% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise Products is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for the company’s earnings is pegged at 60 cents per share, suggesting no change from the prior-year reported figure.

TechnipFMC plc FTI currently has an Earnings ESP of +3.71% and a Zacks Rank #3.

TechnipFMC is scheduled to release first-quarter earnings on Apr 27. The Zacks Consensus Estimate for its earnings is pegged at 4 cents per share, suggesting an increase from the prior-year reported figure.

Sunoco LP SUN has an Earnings ESP of +3.95% and is currently a Zacks #1 Ranked player.

Sunoco is scheduled to release first-quarter results on May 2. The Zacks Consensus Estimate for SUN’s earnings is pegged at $1.18 per share, suggesting a decline from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report

TechnipFMC plc (FTI) : Free Stock Analysis Report

Sunoco LP (SUN) : Free Stock Analysis Report

RPC, Inc. (RES) : Free Stock Analysis Report

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Zacks Investment Research