Helmerich & Payne (HP) Q3 Earnings and Sales Beat Estimates

Core Insights - Helmerich & Payne, Inc. reported a fiscal third-quarter 2024 adjusted net income of 92 cents per share, exceeding the Zacks Consensus Estimate of 77 cents, but down from $1.09 in the same quarter last year, primarily due to underperformance in International Solutions and North America Solutions segments [1] Financial Performance - Operating revenues reached $697.7 million, surpassing the Zacks Consensus Estimate of $669 million, with Drilling Services contributing $695 million, which also exceeded the consensus mark of $664 million, although this figure represents a 3.6% decline from the previous year [2] - North America Solutions generated operating revenues of $620 million, down 3.1% year over year, with an operating profit of $163.4 million, slightly below the prior year's $169.5 million but above the estimate of $122 million [5] - International Solutions reported operating revenues of $47.9 million, a decrease of 1.6% from the previous year, with an operating loss of $4.8 million, significantly worse than the prior year's loss and missing the profit estimate [6] - Offshore Gulf of Mexico revenues were $27.2 million, down 12.8% year over year, but operating profit increased to $5 million, beating both the prior year's figure and estimates [7] Shareholder Returns - The company declared a quarterly cash dividend of 25 cents per share and a supplemental cash dividend of 17 cents per share, returning an additional $42 million to shareholders through dividends in the third quarter [3][4] Financial Position - As of June 30, 2024, the company had $203.6 million in cash and cash equivalents and long-term debt of $545.6 million, resulting in a debt-to-capitalization ratio of 16% [8] Guidance - For the fourth quarter of fiscal 2024, Helmerich & Payne expects operating gross margin between $260-$280 million, with North America Solutions and Offshore Gulf of Mexico projected to contribute $6-$8 million each [9] - International Solutions is expected to have direct margins between $(2) million and $2 million, with additional rig preparation expenses related to Saudi Arabia operations impacting the guidance [10] - The company anticipates a capital outlay of $500 million for fiscal year 2024, with ongoing asset sales projected to offset some expenditures [11]