Revenue and EBITDA fell
Rowan’s adjusted revenue fell to $379 million in 3Q16 from $485 million in 2Q16. Its 3Q16 EBITDA (earnings before interest, taxes, depreciation, and amortization) also fell to $168 million from $256 million in 1Q16.
Earnings compared to estimates
In 3Q16, Rowan’s EBITDA was 24% higher than Wall Street analysts’ estimate of $135 million. Its revenue was also 4.7% higher than the estimated $362 million.
2016 has been another difficult year for offshore drillers. All offshore drilling (OIH) stocks have negative year-to-date returns.
Stock returns on November 4, 2016, as compared to prices at the start of year are as follows:
What you’ll find in this series
In this series, we’ll look at Rowan Companies’ 3Q16 results and conference call highlights. We’ll analyze the company’s current position, management’s future plans, and discussions between management and analysts to gauge the company’s future. We’ll also take a detailed look at management’s outlook for the offshore drilling industry.