July 23 (Reuters) - Oilfield services company RPC Inc (RES.N: Quote, Profile, Research) reported a second-quarter profit that beat Wall Street estimates even as it faced tough competitive pricing and higher costs.
The company posted net income of $22.5 million, or 23 cents per share, compared with $23.8 million, or 24 cents a share, in the year-ago quarter.
Total revenue rose 25.5 percent to $214.7 million.
Analysts on average were expecting earnings of 16 cents a share, excluding items, on revenue of $203.5 million, according to Reuters Estimates.
The company faced margin pressures due to competitive pricing and operating cost increases, especially for fuel and certain materials and supplies used in providing services, RPC Chief Executive Richard Hubbell said in a statement.
"In most cases, we are not currently able to share these cost increases with our customers due to the pricing environment," Hubbell said.
Shares of the company closed at $17.42 Tuesday on the New York Stock Exchange, near their 52-week high of $17.80 hit on April 21.
1 comment:
Its not always the case.
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