RPC (RES) Stock Down On Q1 Earnings Miss And Dividend Cut
Zacks Investment Research | Apr 25, 2019 12:15AM ET
RPC, Inc. (NYSE:RES) reported first-quarter 2019 breakeven earnings per share, lagging the Zacks Consensus Estimate of 3 cents. The bottom line also declined from the year-ago level of 24 cents.
Total revenues of $334.7 million missed the Zacks Consensus Estimate of $345 million. Moreover, the top line declined from the year-ago figure of $436.3 million.
The weak fourth-quarter results were primarily attributable to lower activity levels and pricing, especially in the company’s biggest service line, the pressure pumping service business.
It slashed quarterly cash dividend to 5 cents per share from 10 cents due to the current uncertainty in the oilfield market. The dividend is payable on Jun 10 to its shareholders of record as of May 10. The company is planning to use this dividend cut as an opportunity to strengthen the capital structure and keep its balance sheet healthy. However, investors are not at all happy with the news, more so in view of the weak first-quarter results. As a result, the stock declined 17.8% yesterday.
RPC, Inc. Price, Consensus and EPS Surprise
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