Yahoo Finance Inside Helmerich & Payne’s Recent Share Price and Returns
Helmerich & Payne Today: The Story behind Fiscal 2Q16
Helmerich & Payne’s share price reaction
Helmerich & Payne (HP) released its financial results for fiscal 2Q16 on May 2, 2016. On that day, the company’s stock price reacted negatively, decreasing to $63.05—about 4.6% lower than the previous day’s close. YTD (year-to-date), however, HP’s share price has risen by ~16%.
By comparison, Baker Hughes (BHI), which released its financial information for fiscal 2Q16 on April 27, saw a 2.5% increase in share price on the day of its earnings release.
HP’s compared to industry ETFs
In the past year, Helmerich & Payne’s stock has returned -15% (net of dividends) as of May 2. Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced a -16% return in the past year.
Helmerich & Payne has underperformed the SPDR S&P 500 ETF (SPY), which has produced ~1% in returns during the same period. In the past year, HP has outperformed the Market Vectors Oil Services ETF (OIH), which has returned nearly -22%. Helmerich & Payne has hugely outperformed the US rig count, which returned -54% in the past one year.
Where does Helmerich & Payne see value accruing?
Helmerich & Payne expects its long-term contracts and advanced rigs to deliver returns in the future. HP Chief Executive Officer John Lindsay commented “But even if this difficult environment persists, we believe that H&P’s competitive and financial positions remain very strong. Our long-term contracts have allowed the Company to remain profitable and protect FlexRig investments.”
You might be interested in “The Helmerich & Payne Paradox: Rising Market Share, Falling Rigs” for more in-depth analysis of Helmerich & Payne. But for now, continue to the next and final part of this series, wherein we’ll discuss the Wall Street analyst targets for Helmerich & Payne.
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