Helmerich & Payne(US:HP) ZACKSยท2025-02-10 11:51Core Viewpoint - Helmerich & Payne, Inc. reported a fiscal first-quarter 2025 adjusted net income of 71 cents per share, exceeding the Zacks Consensus Estimate of 69 cents, primarily due to strong performance in the North America Solutions segment [1][2]. Financial Performance - The adjusted net income of 71 cents per share is lower than the year-ago quarter's figure of 97 cents per share, attributed to weakness in the International Solutions segment [2]. - Operating revenues for the quarter were $677.3 million, missing the Zacks Consensus Estimate of $691 million, with Drilling Services sales totaling $674.6 million, also below the consensus mark of $688 million [2]. - North America Solutions segment generated operating revenues of $598.1 million, a slight increase of 0.7% year over year, but missed the Zacks Consensus Estimate of $608 million [4]. - International Solutions segment reported operating revenues of $47.5 million, a decrease of 13.6% from the previous year, missing projections due to challenges in the Saudi Arabia market [5]. - Offshore Solutions revenues increased by 14.4% to $29.2 million, but still fell short of projections [6]. Segmental Performance - North America Solutions achieved an operating profit of $152 million, up from $144.5 million in the prior-year period, benefiting from lower expenses [4]. - International Solutions faced an operating loss of $15.2 million, compared to a profit of $5.4 million in the same quarter last year [5]. - Offshore Solutions reported an operating profit of $3.5 million, a 15% increase from the prior year, but missed estimates due to material and supply expense timing issues [6]. Financial Position - The company spent $106.5 million on capital programs in the reported quarter, with cash and cash equivalents totaling $391.2 million and long-term debt at $1.8 billion, resulting in a debt-to-capitalization ratio of 37.7% [7]. Guidance - For Q2 Fiscal 2025, the company expects operating gross margin to be between $240-$260 million for North America Solutions and $6-$8 million for Gulf of Mexico (Offshore Solutions) legacy operations [8]. - International Solutions' direct margins are anticipated to be between $7 million and $3 million, excluding foreign exchange impacts [9]. - The capital outlay for fiscal year 2025 is estimated to be between $360 million and $395 million, with ongoing asset sales expected to offset some expenditures [10].