RPC (NYSE:RES) Posts Earnings Results, Hits Estimates

Key Points

• RPC met adjusted earnings expectations with EPS of $0.10, while revenue rose 4.6% year over year to $467.7 million, slightly below consensus. Adjusted EBITDA increased to $71.5 million, with margins expanding to 15.3%.
• Operational gains in coiled tubing, snubbing and Thru Tubing Solutions were offset by an 8% sequential decline in wireline revenue. RPC recorded a $74.5 million non-cash impairment tied to Pintail Wireline, resulting in a $41.9 million net loss.
• RPC maintained a strong balance sheet with approximately $177 million in cash, minimal debt and no revolver borrowings, while keeping its $0.04-per-share dividend unchanged. Analysts remain cautious, with the stock carrying a consensus “Reduce” rating and a $6.00 target price.

RPC (NYSE:RES - Get Free Report) posted its quarterly earnings data on Thursday. The oil and gas company reported $0.10 earnings per share for the quarter, hitting the consensus estimate of $0.10, FiscalAI reports. RPC had a net margin of 1.28% and a return on equity of 4.82%. The company had revenue of $467.74 million for the quarter, compared to analysts' expectations of $469.12 million. During the same period in the prior year, the business earned $0.09 earnings per share. RPC's revenue for the quarter was up 4.6% compared to the same quarter last year.

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 Price Performance

Shares of RPC stock traded down $0.32 during trading hours on Thursday, hitting $6.42. The company's stock had a trading volume of 1,977,134 shares, compared to its average volume of 2,066,574. The business has a 50 day moving average price of $6.15 and a two-hundred day moving average price of $6.37. RPC has a 12-month low of $4.99 and a 12-month high of $8.16. The company has a market cap of $1.42 billion, a PE ratio of 71.31 and a beta of 0.86. The company has a debt-to-equity ratio of 0.02, a quick ratio of 2.76 and a current ratio of 3.34.

RPC News Roundup

Here are the key news stories impacting RPC this week:

• Positive Sentiment: RPC declared its regular quarterly cash dividend of $0.04 per share, payable December 10 to shareholders of record on November 10. The dividend signals continued capital returns and is supported by $177.1 million in quarter-end cash. RPC Declares Regular Quarterly Cash Dividend
• Positive Sentiment: Underlying operating performance was relatively stable: revenue reached $467.7 million, up 1% sequentially, while adjusted EBITDA was $71.5 million, representing a 15.3% margin. Technical Services revenue increased to $444.2 million and Support Services revenue rose to $23.5 million. RPC Reports Third-Quarter Results
• Neutral Sentiment: Adjusted earnings were reported at approximately $0.10 per share, matching the consensus estimate in several reports; another estimate placed consensus at $0.09, implying a modest beat. Revenue was slightly below the $469.1 million consensus but increased 4.6% year over year. RPC Tops Q3 Earnings and Revenue Estimates
• Negative Sentiment: RPC recorded a $41.9 million net loss, or $0.20 per diluted share, after recognizing a $74.5 million non-cash impairment related to Pintail, its wireline business. The charge raises concerns about the value and future performance of that operation and was the primary reason the headline results were viewed negatively by investors. RPC Q3 Results and Stock Reaction

Analysts Set New Price Targets

Several research firms have weighed in on RES. Weiss Ratings cut RPC from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, September 16th. Susquehanna reduced their price target on shares of RPC from $7.50 to $6.00 and set a "neutral" rating for the company in a research note on Wednesday, July 8th. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus 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.

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