Here's What Key Metrics Tell Us About Helmerich & Payne (HP) Q2 Earnings
For the quarter ended March 2023, Helmerich & Payne (HP) reported revenue of $769.22 million, up 64.5% over the same period last year. EPS came in at $1.26, compared to -$0.17 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $741.49 million, representing a surprise of +3.74%. The company delivered an EPS surprise of +20.00%, with the consensus EPS estimate being $1.05.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Helmerich & Payne performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Number of available rigs at the end of period - North America Solutions: 233 versus 234.75 estimated by four analysts on average.
- Number of available rigs at the end of period - International Solutions: 22 compared to the 21 average estimate based on four analysts.
- Number of available rigs at the end of period - Offshore Gulf of Mexico: 7 versus 7 estimated by four analysts on average.
- Average active rigs - Offshore Gulf of Mexico: 4 versus the three-analyst average estimate of 4.04.
- Average active rigs - North America Solutions: 183 versus 178.88 estimated by three analysts on average.
- Average active rigs - International Solutions: 14 versus 12.25 estimated by three analysts on average.
- Operating revenues- Contract Drilling - U.S. Land (NORTH AMERICA SOLUTIONS OPERATIONS): $675.78 million compared to the $659.10 million average estimate based on five analysts. The reported number represents a change of +65.3% year over year.
- Operating revenues- Contract Drilling - International land operations (INTERNATIONAL SOLUTIONS OPERATIONS): $55.89 million compared to the $51.32 million average estimate based on five analysts. The reported number represents a change of +103.8% year over year.
- Operating revenues- Contract Drilling - U.S. Offshore (OFFSHORE GULF OF MEXICO OPERATIONS): $34.98 million versus the five-analyst average estimate of $33.87 million. The reported number represents a year-over-year change of +20%.
- Operating revenues- Drilling services: $766.68 million versus the four-analyst average estimate of $748.36 million.
- North America Solutions- Segment operating income (loss): $182.15 million versus $144.77 million estimated by three analysts on average.
- International Solutions- Segment operating income (loss): $3.96 million versus the three-analyst average estimate of $0.34 million.
View all Key Company Metrics for Helmerich & Payne here>>>
Shares of Helmerich & Payne have returned -5.4% over the past month versus the Zacks S&P 500 composite's +2.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Helmerich & Payne, Inc. (HP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research