RPC (NYSE:RES) Releases Quarterly Earnings Results, Hits Estimates

RPC (NYSE:RES) released its earnings results on Thursday. The oil and gas company reported $0.10 earnings per share for the quarter, meeting the consensus estimate of $0.10, FiscalAI reports. The firm had revenue of $467.74 million for the quarter, compared to the consensus estimate of $469.12 million. RPC had a return on equity of 4.82% and a net margin of 1.28%. The company’s revenue for the quarter was up 4.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.09 EPS.

Here are the key takeaways from RPC’s conference call:

• RPC reported 1% sequential revenue growth to $468 million, while adjusted EBITDA increased to $71.5 million and margins expanded 100 basis points to 15.3%, supported by operational execution, cost leverage, technology adoption and favorable service-line mix.
• Coiled tubing revenue rose 20% sequentially and snubbing revenue increased 12%, while Thru Tubing Solutions continued gaining traction with its MetalMax technology and recorded depth records in the Bakken and Montney formations.
• Wireline revenue declined 8% sequentially amid persistent pricing weakness and cost pressure, leading to a $74.5 million non-cash impairment charge and reduced long-term earnings expectations for Pintail Wireline.
• Management is cautiously optimistic about 2027 activity and commodity prices but expects normal fourth-quarter seasonality, ongoing macro uncertainty and labor-cost pressure; additional pressure-pumping capacity will remain idle until pricing improves or customers provide firm commitments.
• RPC ended the quarter with approximately $177 million in cash, only $30 million of notes payable and no revolver borrowings, maintaining financial flexibility while projecting 2026 capital expenditures of $155 million to $175 million and an unchanged $0.04-per-share dividend.

RPC Trading Down 5.3%

Shares of NYSE RES traded down $0.35 during midday trading on Thursday, hitting $6.38. The company’s stock had a trading volume of 3,485,719 shares, compared to its average volume of 2,388,673. The company has a current ratio of 3.34, a quick ratio of 2.76 and a debt-to-equity ratio of 0.02. The business’s 50 day moving average is $6.15 and its two-hundred day moving average is $6.37. RPC has a 12-month low of $4.99 and a 12-month high of $8.16. The firm has a market cap of $1.41 billion, a P/E ratio of 28.04 and a beta of 0.86.

RPC Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be issued a $0.04 dividend. This represents a $0.16 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Tuesday, November 10th. RPC’s dividend payout ratio is presently 177.78%.

RPC News Roundup

Here are the key news stories impacting RPC this week:

• Positive Sentiment: RPC declared a regular quarterly dividend of $0.04 per share, equivalent to $0.16 annually and a yield of approximately 2.5%. The dividend is payable December 10 to shareholders of record on November 10. RPC third-quarter results and dividend announcement
• Positive Sentiment: Third-quarter revenue reached $467.7 million, up sequentially and higher year over year. Technical Services revenue increased to $444.2 million, while Support Services revenue rose to $23.5 million. Adjusted EBITDA was $71.5 million, with a 15.3% margin, and RPC ended the quarter with $177.1 million in cash. RPC third-quarter operating results
• Neutral Sentiment: Adjusted earnings were approximately $0.10 per share, in line with the consensus estimate and above the $0.09 reported a year earlier. Revenue, however, was modestly below analysts’ $469.1 million forecast, limiting the positive impact of the earnings performance. RPC earnings analysis
• Negative Sentiment: RPC recorded a $74.5 million non-cash impairment charge tied to its Pintail wireline business, resulting in a $41.9 million GAAP net loss, or $0.20 per diluted share. The sharp contrast between the GAAP loss and adjusted earnings likely drove the negative investor reaction. RPC Pintail impairment report

Analyst Ratings Changes

Several research analysts have commented on the stock. Weiss Ratings lowered shares of RPC from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, September 16th. Susquehanna reduced their target price on shares of RPC from $7.50 to $6.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 8th. Three analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $6.00.

About RPC

RPC, Inc (NYSE: RES) is an oilfield services company that provides specialized equipment and services to energy producers and exploration and production companies. Its offerings support the drilling, completion, production and maintenance of oil and natural gas wells.

The company’s services include pressure pumping, coiled tubing, well control, nitrogen services, downhole tools, well testing, fishing and rental equipment. These services are used in activities such as hydraulic fracturing, well intervention, workover operations and production enhancement.

RPC was founded in 1984 and is headquartered in Atlanta, Georgia.