(HP) - Amazingly, Year-to-year growth has exceeded 140% in seven straight quarters

Helmerich & Payne has exceeded earnings estimates in seven out of the past eight quarters, with four of those periods registering surprises of more than 17%. Amazingly, Year-to-year growth has exceeded 140% in seven straight quarters. Two analysts have raised their estimates for both this year and next. Over the past 60 days, this year's estimates have increased 3.7% to $2.50 per share, while next year's numbers have jumped 11% to $3.85 per share. Full Analysis Helmerich & Payne, Inc. (HP) engages in the contract drilling of oil and gas wells for others in North and South America. The company provides drilling rigs, equipment, personnel, and camps on a contract basis to enable its customers to explore for and develop oil and gas from onshore areas, as well as from fixed platforms, tension-leg platforms, and spars in offshore areas. It also engages in the ownership, development, and operation of commercial real estate in Tulsa, Oklahoma. The company said in late-July its fiscal third-quarter profit surged, driven by stronger U.S. land operations and a one-time gain from asset sales. Quarterly net income more than doubled to $80 million, or 69 cents per share, from $29.8 million or 28 cents per share, in the year-ago period. Operating revenue grew to $319.8 million from $207.4 million. Analysts had expected 64 cents per share. In a sign of health, operating income from the company's U.S. land drilling unit nearly doubled in the quarter to $93.7 million from $47.2 million, as average rig revenue set a record of $23,503 per day. In last year's fiscal third quarter, average rig revenue was $16,658 per day. This year's third quarter segment operating income increased in all of the Company's contract drilling business segments compared with both last year's third quarter and this year's second quarter. Company President and C.E.O., Hans Helmerich commented, "Even with the uncertainty surrounding natural gas prices, rig demand remains strong and customers are increasingly focused on safety, performance and cost reducing drilling technology. The Company's increasing FlexRig activity will add substantial leverage to our earnings going forward, even if rig margin growth continues to moderate. Although we expect to continue to face production schedule and capital cost challenges, we anticipate our overall new build returns to remain strong." HP has exceeded earnings estimates in seven out of the past eight quarters, with four of those periods registering surprises of more than 17%. Amazingly, Year-to-year growth has exceeded 140% in seven straight quarters. Two analysts have raised their estimates for both this year and next. Over the past 60 days, this year's estimates have increased 3.7% to $2.50 per share, while next year's numbers have jumped 11% to $3.85 per share. The stock is trading at an ultra-low price-to-earnings ratio of 6x next year's estimate, well below the projected long-term growth rate of 48%, giving the stock a PEG ratio of 0.12. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home