31 Jul

What You Need to Know Before Rowan Companies’ Q2 2018 Results

WRITTEN BY Sue Goodridge

Second-quarter results

Rowan Companies (RDC) is set to release its second-quarter results tomorrow (August 1) before the markets open. Let’s see what analysts expect.

What You Need to Know Before Rowan Companies’ Q2 2018 Results

According to Reuters consensus, Rowan Companies’ estimated second-quarter revenue stands at $208.04 million—1.48% lower than its $211.2 million last quarter and 35.03% lower year-over-year. This level would mark the second consecutive fall in Rowan’s quarterly revenues. In the first quarter, Rowan’s revenues were down 28.8% sequentially.

Ensco (ESV) and Diamond Offshore (DO) have already released their second-quarter results. Ensco’s Q2 2018 revenue was $458.5 million—9.9% higher than the previous quarter. Diamond Offshore’s Q2 2018 revenue was $268.8 million—9% lower than the previous quarter.

Analysts expect Rowan Companies’ EBITDA at $16.9 million in Q2 2018, compared to $25.6 million in the first quarter and $130.7 million in Q2 2017. This EBITDA would represent a 33.9% fall quarter-over-quarter. Rowan Companies’ estimated second-quarter EPS is -$0.93.

Analyst recommendations

Twenty-nine analysts have recommendations on Rowan Companies. Of these, 45% are bullish on RDC. Four have “strong buy” ratings, and nine analysts have “buy” ratings. Of the total, 48% or 14 analysts are neutral and have “hold” ratings. The remaining 7% or two analysts have “sell” ratings for Rowan Companies. 48% of the analysts covering Transocean (RIG) are bullish on the company, while only 23% of the analysts covering Noble Corporation (NE) are bullish on NE.

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