Land drilling contractor Helmerich & Payne (NYSE: HP) will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Helmerich & Payne missed analysts’ revenue expectations last quarter, reporting revenues of $932.4 million, down 8.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Is Helmerich & Payne a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Helmerich & Payne’s revenue to decline 5.7% year on year, a reversal from the 49.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Helmerich & Payne has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Helmerich & Payne’s peers in the oilfield services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. World Kinect delivered year-on-year revenue growth of 50.3%, beating analysts’ expectations by 27.7%, and Baker Hughes reported a revenue decline of 2.4%, topping estimates by 3.7%. World Kinect traded up 5.2% following the results while Baker Hughes was also up 5.8%.
Read our full analysis of World Kinect’s results here and Baker Hughes’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 6% on average over the last month. Helmerich & Payne is up 11.3% during the same time and is heading into earnings with an average analyst price target of $40.80 (compared to the current share price of $33.97).
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