RPC (NYSE:RES) Announces Earnings Results

RPC (NYSE:RES) announced its earnings results on Thursday. The oil and gas company reported $0.10 EPS 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 during the quarter, compared to analysts’ expectations of $469.12 million. During the same period last year, the company posted $0.09 earnings per share. The business’s revenue for the quarter was up 4.6% on a year-over-year basis.

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 Stock Performance

Shares of RES stock traded down $0.04 during trading hours on Friday, reaching $6.34. 1,122,509 shares of the company’s stock were exchanged, compared to its average volume of 2,070,238. The business has a fifty day moving average price of $6.15 and a 200-day moving average price of $6.37. The stock has a market capitalization of $1.40 billion, a P/E ratio of 70.48 and a beta of 0.86. The company has a quick ratio of 2.76, a current ratio of 3.34 and a debt-to-equity ratio of 0.02. RPC has a fifty-two week low of $4.99 and a fifty-two week high of $8.16.

RPC Dividend Announcement

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

Key Headlines Impacting RPC

Here are the key news stories impacting RPC this week:

• Positive Sentiment: RPC declared a quarterly dividend of $0.04 per share, payable December 10 to shareholders of record on November 10. The annualized payout is $0.16 per share, representing an approximately 2.5% yield. RPC third-quarter results and dividend announcement
• Positive Sentiment: Adjusted earnings were approximately $0.10 per share, in line with the consensus estimate cited by several reports and above the year-earlier $0.09. Revenue reached $467.7 million, up 4.6% year over year and slightly higher sequentially. RPC Q3 earnings report
• Neutral Sentiment: Technical Services revenue increased 1% sequentially to $444.2 million, while Support Services revenue rose 3% 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.
• Negative Sentiment: RPC recorded a $41.9 million GAAP net loss, or $0.20 per diluted share, versus a profit in the prior-year period. The result included a $74.5 million non-cash impairment charge tied to Pintail, the company’s wireline business, which likely drove the negative investor reaction. RPC Q3 loss and Pintail impairment
• Negative Sentiment: Reported revenue of $467.7 million was modestly below the roughly $469.1 million analyst consensus, while the impairment raises concerns about the outlook and value of the wireline business despite stable adjusted operating results.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on RES. Susquehanna reduced their price target on RPC from $7.50 to $6.00 and set a “neutral” rating for the company in a report on Wednesday, July 8th. Weiss Ratings cut shares of RPC from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, September 16th. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $6.00.

RPC Company Profile

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.