A pair of convincing beats on quarterly earnings sent Helmerich & Payne(NYSE: HP) stock to a double-digit gain on Tuesday. The contract-drilling specialist for the oil and gas industry posted its first quarter of fiscal 2024 figures, which cheered investors despite several declines in key metrics. The company's shares closed the day 12% higher, easily outpacing the essentially flat performance of the S&P 500 index.
Fiscal first-quarter results published
For the quarter, Helmerich & Payne earned just over $677 million in revenue, which was down from the nearly $720 million in the same period of fiscal 2023. The company's non-GAAP (adjusted) net income was $98.3 million ($0.97 per share), compared to almost $118 million in the year-ago quarter.
Despite the drops in both headline figures, they crushed analyst estimates. On average, pundits following Helmerich & Payne stock were modeling for less than $662 million in revenue and adjusted per-share net income of $0.73.
On an operational level, the company finished the quarter with 151 active rigs in its core North America Solutions unit, which was at the lower end of its guidance. Rig count is critical for its business, as this indicates the level of demand for its services.
The rig count should rise this quarter
Helmerich & Payne proffered selected guidance for both its current (second) quarter and for the entirety of fiscal 2024.
It expects to end this quarter with 154 to 159 active rigs in the North America solutions segment, with direct margins (operating income minus operating expenses) coming in at $255 to $275 million. For the full year, among other forecasts, the company is anticipating that its gross capital expenditures (capex) will be $450 million to $500 million, while research and development costs should be around $30 million.
It did not provide any guidance for full-year profitability.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Helmerich & Payne. The Motley Fool has a disclosure policy.
