Key Takeaways from Rowan’s 3Q15 Earnings and Conference Call
How Did Rowan Companies Perform in 3Q15 amid Industry Slump?
Revenue and EBITDA rose
As of November 5, Rowan Companies’ (RDC) stock has fallen by 3.6% since its 3Q15 earnings were released on November 3, 2015. The company’s revenue rose to $545 million in 3Q15 from $508 million in the previous quarter. Also, its 3Q15 EBITDA (earnings before interest, tax, depreciation, and amortization) was recorded at $268 million, 17% higher than the previous quarter’s EBITDA of $228 million.
Actual versus estimates
In 3Q15, Rowan’s revenue and EBITDA were higher than Wall Street analysts’ estimates. The company’s revenue was 5% higher than the estimate of $521 million, whereas its EBITDA was 21% higher than the estimate of $221 million. Noble (NE) and Ensco (ESV), which released their earnings in the prior week, also beat EBITDA estimates.
Stock performance
In the same period, other offshore drilling (OIH) (IYE) (XLE) companies saw their stocks fall. Diamond Offshore (DO), Transocean (RIG), Atwood Oceanics (ATW), Pacific Drilling (PACD), and Seadrill (SDRL) fell by 1.2%, 8%, 2%, 5.4%, and 3%, respectively.
What you’ll find in this series
In this series, we’ll look at Rowan’s 3Q15 results and conference call highlights. We’ll analyze the company’s current position, management’s plans for the future, and discussions between the management and the analysts. We’ll also analyze the company’s outlook for the offshore drilling industry.
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