Newspaper article THE JOURNAL RECORD

Tulsa-Based H&P Beats Expectations, but Stock Falls

Newspaper article THE JOURNAL RECORD

Tulsa-Based H&P Beats Expectations, but Stock Falls

Article excerpt

Shares of contract driller Helmerich & Payne Inc. dipped more than 5 percent on Thursday despite better second-quarter earnings than expected.

The overall performance improved, although the company's international land operations business unit posted lower results compared to the first quarter and a year ago.

The stock was down more than 6 percent in afternoon trading, but finished at $107.02 per share, down 5.97 percent, or $6.79, on the New York Stock Exchange. The company trades under the ticker symbol HP.

The Tulsa-based energy company and rig manufacturer reported net income of $174.57 million, up from $151.08 million last year, an increase of 15 percent.

Earnings per share beat analysts' expectations by 11 cents and increased 14 percent to $1.59, compared to $1.39 a year ago. On average, 23 analysts polled by Thomson Reuters expected the company to earn $1.48 per share for the quarter.

Profits for the first six months were $347.7 million, up 12 percent from $310.7 million for the same period last year.

Operating revenues grew 6 percent for the quarter to $893.43 million from $838.31 million the same period a year ago. Analysts estimated revenues of $888.35 million for the quarter. For the first six months, operating revenue was $1.78 billion, up 10 percent from the $1.68 billion the same period a year ago.

Second-quarter operating income in HP's international land operations segment fell 15 percent to $11.2 million, compared to $13.2 million for the same period last year. It was down 12 percent compared to $12.8 million in the first quarter.

The company blamed the lower number of revenue days during the second fiscal quarter for the decrease in segment operating income.

Helmerich & Payne did miss some analysts' estimates, said Katie Michaels-Johnson, portfolio manager for Tulsa-based Fredric E. Russell Investment. Yahoo Finance, for example, reported that HP failed to beat Zacks Equity Research's earnings estimate.

"But the company has been doing so well lately that some disappointment was inevitable," said Michaels-Johnson, referring to the stock decline. "Second-quarter results were strong, and the company continues to gain more contracts for new rigs, a good sign for future quarters. …

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