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Helmerich & Payne (HP) Q1 Earnings Crush Loss Estimate

Zacks Equity Research

Incorporated in 1940, Helmerich & Payne Inc. HP is engaged in the contract drilling of oil and gas wells in the U.S. and internationally. The company supplies drilling rigs, equipment, personnel, and camps on a contractual basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas. Helmerich & Payne’s contract drilling business consists of three business segments: U.S. land drilling, offshore drilling and international land drilling.

Currently, Helmerich & Payne has a Zacks Rank #4 (Sell) but that could change following its first quarter fiscal 2016 earnings report which has just released. Coming to earnings surprise history, the Tulsa, OK-based major land and offshore drilling contractor has a good track record: its beaten estimates in 3 of the last four quarters at an average rate of 13.82%.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Helmerich & Payne earnings crush loss estimate. Net operating earnings per share – excluding special items – came in at 5 cents, contrary to the Zacks Consensus Estimate for a loss of 8 cents.

Revenue: Revenues beat expectations. Revenues of $487.8 million were above the Zacks Consensus Estimate of $464 million.

Key Stats: Operating income in the U.S. Land Operations segment tumbled a whopping 83% from the year-earlier quarter to $55.5 million, while for the Offshore Operations unit it fell 64% to $7.7 million. The International Land Operations segment reported an operating loss of $6.7 million, as against income of $10.6 million in the first quarter of fiscal 2015.

Check back later for our full write up on this Helmerich & Payne earnings report later!

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