RPC(US:RES) ZACKS·2024-07-23 12:55Core Viewpoint - RPC Inc (RES) is expected to report a decline in second-quarter 2024 earnings, with significant reductions in both revenue and operating profit anticipated due to decreased drilling activities and customer spending in the oilfield services sector [1][4]. Revenue Estimates - The Zacks Consensus Estimate for second-quarter revenues is $385.7 million, reflecting a 7.3% decline from the previous year's figure [2]. - The estimated operating profit from Technical Services is projected at $35 million, down from $77 million in the same quarter last year, indicating a significant drop in the major revenue contributor for the company [4]. Market Conditions - Average spot prices for West Texas Intermediate crude were $85.35 per barrel in April, $80.02 in May, and $79.77 in June, suggesting a favorable pricing environment for exploration and production activities during the second quarter [3]. - Despite favorable pricing, drilling activities have declined both domestically and internationally, leading to reduced spending on upstream activities by explorers and producers [3][4]. Earnings Performance - The company's earnings per share estimate for the second quarter is 13 cents, which represents a nearly 57% decrease from the reported figure in the same quarter last year [12]. - In the last reported quarter, the company missed the Zacks Consensus Estimate of 19 cents per share, with an average negative surprise of 13.3% over the last three quarters [11]. Industry Trends - The number of operating rigs in North America decreased to 738 in the June quarter from 831 in the first quarter, while the international rig count also saw a decline [13].