RPC Q2 profit beats on Rental Tools activity growth
RPC Q2 profit beats on Rental Tools activity growth
Overview
U.S. oilfield services firm's Q2 revenue rose 1% but missed analyst expectations
Adjusted net income for Q2 more than doubled and beat analyst expectations
Company declared regular quarterly dividend of $0.04 per share
Outlook
Company says improved pricing and activity visibility support targeted growth through modest CapEx increase
RPC says oil price volatility keeps management cautious about future investments
Company highlights strong balance sheet and ability to invest opportunistically
Result Drivers
SUPPORT SERVICES GROWTH - Support Services segment revenues rose 11% sequentially, led by a 21% increase in Rental Tools activity
TECHNICAL SERVICES MIXED - Technical Services segment saw modest revenue gains, with double-digit increases in Snubbing, Cementing, and Downhole Tools mostly offset by lower Wireline revenues
IMPROVED JOB MIX - Cost of revenues declined despite higher sales, primarily due to improved job mix, specifically materials & supplies within Pressure Pumping
Company press release: ID:nPn1FmYH6a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $460.87 mln | $469.80 mln (4 Analysts) |
Q2 Adjusted Net Income | Beat | $17.80 mln | $8.90 mln (4 Analysts) |
Q2 Net Income |
| $12.08 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy."
Wall Street's median 12-month price target for RPC Inc is $6.10, about 19.1% above its July 29 closing price of $5.12
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 29 three months ago
Reuters Recommended Reads
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July 27 - Baker Hughes flags lower spending by oil and gas producers in 2026
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)