NYSE$HP

Helmerich & Payne Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Helmerich & Payne reported Q3 2024 results with increased revenues and net income.

Helmerich & Payne reported a net income of $89 million, or $0.88 per diluted share, on operating revenues of $698 million for the quarter ended June 30, 2024. The North America Solutions segment saw increased operating income and direct margins, while the International Solutions segment experienced an operating loss due to recommissioning expenses. The company returned $42 million to shareholders in dividends and anticipates continued activity in the International Solutions segment with rigs commencing work in Saudi Arabia.

  • Net income for the third quarter of fiscal year 2024 was $89 million, or $0.88 per diluted share.
  • North America Solutions segment operating income increased by $16 million sequentially.
  • The company's first super-spec FlexRig® arrived in Saudi Arabia.
  • The company returned $42 million to shareholders in the form of base and supplemental dividends.

Headline financials

Total Revenue

$698M

Previous: $724M-3.6%
EPS

$0.88

Previous: $1.09-19.3%
Capital Expenditures

-$389M

Previous: -$282M-38.1%
Free Cash Flow

-$300M

Previous: -$186M-61.1%
Net Income

$88.7M

Previous: $95.3M-6.9%
Operating Income

$111M

Previous: $149M-25.2%
Gross Profit

$280M

Previous: $294M-4.8%
Cash & Equivalents

$204M

Previous: $221M-7.7%
Total Assets

$4.48B

Previous: $4.34B+3.3%
R&D Expense

$10.6M

No prior period
Stock-Based Comp

$7.68M

Previous: $8.18M-6.2%

Revenue & EPS history

Helmerich & Payne · Revenue · Quarterly

$698M

Q3 2024-3.6%vs Q3 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Helmerich & Payne · $628M total across 2 segments · Q4 2023

  • North America Solutions
    $575M+4.1%
  • International Solutions
    $53.2M+25.5%

Forward guidance

Helmerich & Payne anticipates exiting the fourth quarter of fiscal year 2024 with between 147-153 active rigs in the North America Solutions segment and expects International Solutions activity levels to remain consistent with the third fiscal quarter, with the first Saudi Arabia rig expected to commence work.

Tailwinds

  • North America Solutions direct margins are expected to be between $260-$280 million.
  • The company expects to exit the quarter between approximately 147-153 contracted rigs in North America Solutions.
  • International Solutions direct margins are expected to be between $(2)-$2 million, exclusive of any foreign exchange gains or losses.
  • Offshore Gulf of Mexico direct margins are expected to be between $6-$8 million.
  • Gross capital expenditures are still expected to be approximately $500 million.

Headwinds

  • International Solutions direct margins for the fourth fiscal quarter are inclusive of approximately $6-$8 million of rig preparation and start-up expense related to our Saudi Arabia operations, higher than previous guidance as some costs shifted from the third fiscal quarter into the fourth fiscal quarter.
  • Macro headwinds persist and are still causing a more cautionary outlook for the industry.
  • Contractual churn remains prevalent in the U.S. market.
  • The company anticipate active rig count to be flat with perhaps a modest incline heading into fiscal year-end.
  • Cash taxes to be paid in fiscal year 2024 are still expected to be approximately $150-$200 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-1.2%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-3.4%

Avg return

30 days after

43%

31 / 72 earnings

Positive

+12.8%

Q1 2024

Best reaction

-20.8%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.2%-1.7%-6.0%
Q1 2026-5.2%-6.0%-6.4%
Q4 2025-3.7%-3.2%+0.3%
Q2 2025-3.5%+0.6%-11.8%
Q1 2025-16.5%-17.9%-23.0%
Q4 2024-6.0%-6.8%-6.9%
Q3 2024+8.8%+3.8%-11.4%
Q2 2024-4.4%-3.5%-12.2%
Q1 2024+12.8%+5.0%+6.9%
Q4 2023-3.0%-0.7%-6.2%
Q3 2023+5.1%+5.4%-5.0%
Q2 2023-4.0%-5.0%-5.8%
Q1 2023-1.5%-7.8%-12.8%
Q4 2022-1.6%-3.2%-11.5%
Q3 2022+5.2%+7.4%+7.4%
Q2 2022+12.1%+6.6%+22.5%
Q1 2022+6.8%+14.2%+33.7%
Q4 2021-19.7%-23.8%-28.1%
Q3 2021-0.9%-4.7%-5.4%
Q2 2021-5.2%-0.5%+4.5%
Q1 2021+4.8%+3.5%+21.5%
Q4 2020+2.0%+22.5%+26.1%
Q3 2020-9.9%-12.9%-18.9%
Q2 2020-20.8%-19.9%-5.1%
Q1 2020+2.8%+5.2%-13.9%
Q4 2019+3.4%-2.1%+7.3%
Q3 2019-2.5%-5.1%-26.3%
Q2 2019-2.5%-7.3%-19.9%
Q1 2019+8.4%+7.9%+3.4%
Q4 2018+7.4%+4.3%+0.3%
Q3 2018+1.0%+6.4%+11.2%
Q2 2018-2.4%-4.5%-7.7%
Q1 2018+3.8%+1.9%-6.3%
Q4 2017+3.6%+3.9%+7.5%
Q3 2017-5.9%-10.7%-18.7%
Q2 2017-7.0%-10.0%-17.7%
Q1 2017-10.4%-12.3%-16.7%
Q4 2016+3.5%+5.4%+19.4%
Q3 2016-1.6%-2.0%-0.9%
Q2 2016-6.7%
Q1 2016+10.3%
Q4 2015-2.2%
Q3 2015-3.4%
Q2 2015+1.2%
Q1 2015-0.2%
Q4 2014-7.7%
Q3 2014-7.9%
Q2 2014-6.0%
Q1 2014+3.4%
Q4 2013+3.0%
Q3 2013-4.7%
Q2 2013-4.5%
Q1 2013+2.2%
Q4 2012+8.4%
Q3 2012+5.0%
Q2 2012-6.6%
Q1 2012+1.9%
Q4 2011-5.5%
Q3 2011-2.9%
Q2 2011+1.7%
Q1 2011+0.3%
Q4 2010+1.2%
Q3 2010-1.9%
Q2 2010-6.0%
Q1 2009-6.8%
Q1 2010+3.1%
Q4 2007-1.2%
Q2 2009-1.2%
Q4 2009-1.2%
Q3 2008+0.5%
Q4 2008+0.5%
Q3 2009+0.5%

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