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RPC Inc. RES reported first-quarter 2025 adjusted earnings of 6 cents per share, which missed the Zacks Consensus Estimate of 7 cents. The bottom line declined from the year-ago figure of 13 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total quarterly revenues were $332.9 million, down from the year-ago quarter’s $377.8 million. The top line, however, beat the Zacks Consensus Estimate of $332 million.
The weak quarterly earnings were primarily due to flat pressure pumping revenues and slightly declining performance across other service lines.
RPC, Inc. Price, Consensus and EPS Surprise
RPC, Inc. price-consensus-eps-surprise-chart | RPC, Inc. Quote
Segmental Performance
Operating profit in the Technical Services segment totaled $14 million, significantly lower than the year-ago quarter’s $31.9 million. The results were primarily affected by pressure pumping pricing, which remained highly competitive.
Operating profit in the Support Services segment amounted to $2.7 million, lower than the year-ago level of $3.6 million.
Total operating profit in the quarter was $12.4 million, down from $32.3 million in the year-ago quarter. The average domestic rig count was 588, down 5.6% year over year.
The average oil price in the quarter was $71.93 per barrel, down 7.1% year over year. The average price of natural gas was $4.14 per thousand cubic feet, up 92.6% from the figure recorded in the corresponding period of 2024.
Costs & Expenses
In the first quarter, the cost of revenues decreased to $243.9 million from $250.2 million in the prior-year period. Selling, general and administrative expenses amounted to $42.5 million, higher than the year-ago quarter’s $41.2 million.
Financials
RPC’s total capital expenditure was $32.3 million.
As of March 31, the company had cash and cash equivalents of $326.7 million and maintained a debt-free balance sheet.
RES’ Zacks Rank and Key Picks
RES currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and Enterprise Products Partners L.P. EPD. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and Enterprise Products carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.