Newpark Resources’ YTD returns
Newpark Resources’ (NR) YTD (year-to-date) returns were ~17% until November 20, 2017. Since December 30, 2016, Newpark Resources has underperformed the US rig count (up 39%) and the Dow Jones Industrial Average (DJIA-INDEX). During this period, it has outperformed the Energy Select Sector SPDR ETF (XLE) (down 11%) and the VanEck Vectors Oil Services ETF (OIH) (-28% returns). It has performed nearly in line with the SPDR S&P 500 ETF (SPY) (16% returns) during the same period.
Newpark Resources’ stock price has fallen—unlike its strong YTD performance in the past month. Since October 20, 2017, Newpark Resources has fallen 7.4%.
Revenues and earnings in 9M17
From 4Q16 through 3Q17, Newpark Resources’ revenues rose 47%. Its earnings switched to a $2.6 million profit in 3Q17—a solid improvement over the net loss of $0.05 million reported in 4Q16. However, its free cash flows remained negative in 3Q17—compared 4Q16. During the same period, its net debt rose 1.3x, primarily due to a significant rise in the total debt.
Next, we’ll compare RPC’s (RES) YTD returns with market indicators and analyze its fundamental metrics.