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Parker Drilling Company Earnings: Margins Expand For Fifth Straight Quarter

Parker Drilling Company reported its results for the fourth quarter. Parker Drilling provides land and offshore contract drilling services and rental tools on a worldwide basis to independent and national oil and gas companies and integrated service providers.

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Parker Drilling Company Earnings Cheat Sheet for the Fourth Quarter

Results: Loss widened to $90.2 million (77 cents per diluted share) from $13.4 million (loss of 12 cents per share) in the same quarter a year earlier.

Revenue: Rose 4.5% to $181.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Parker Drilling Company reported adjusted net income of 17 cents per share. By that measure, the company beat the mean estimate of 15 cents per share. Analysts were expecting revenue of $182.7 million.

Quoting Management: “We produced solid growth in revenues and achieved a 37 percent increase in operating gross margin and a 39 percent increase in adjusted EBITDA this quarter,” said Parker Drilling President and Chief Executive Officer, David Mannon. “Our Rental Tools business continued to respond to the shifting focus of U.S. drilling activity while investing in inventory to meet the growing needs of land and offshore customers. The U.S. Barge Drilling business achieved a higher average dayrate despite a moderate reduction in rig fleet utilization, while our International Drilling operations benefited from a higher fleet average dayrate and the addition of an Operations Maintenance contract.”

Key Stats:

Last quarter, the company’s gross margin expanded 9.7 percentage points from the year-earlier quarter to 24.5%. It was the fifth consecutive quarter of gross-margin growth. In this period, margins have grown an average of 20.3 percentage points per quarter on a year-over-year basis.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 5 cents in the third quarter and by 6 cents in the second quarter.

PKD ended a three-quarter streak of profits when it reported a loss in the latest quarter. The company reported a profit of $20.7 million in the third quarter, a profit of $14.2 million in the second quarter and $4.8 million in the first.

Revenue has now increased for three quarters in a row. In the third quarter, revenue rose 2.7% to $176.6 million while the figure rose 10.4% in the second quarter from the year earlier.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from 18 cents per share to 16 cents. The average estimate for the fiscal year is 50 cents per share, down from 53 cents ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

Article source: http://us.rd.yahoo.com/finance/news/rss/story/*http://finance.yahoo.com/news/Parker-Drilling-Company-wscheats-3199385626.html?x=0

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Posted by on Feb 23 2012. Filed under Exploration. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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