Rowan Companies PLC Stock Downgraded (RDC)
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- RDC's very impressive revenue growth greatly exceeded the industry average of 12.5%. Since the same quarter one year prior, revenues leaped by 50.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.93, which clearly demonstrates the ability to cover short-term cash needs.
- 46.80% is the gross profit margin for ROWAN COMPANIES PLC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.80% trails the industry average.
- ROWAN COMPANIES PLC's earnings per share declined by 16.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ROWAN COMPANIES PLC reported lower earnings of $1.08 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($1.98 versus $1.08).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 85.8% when compared to the same quarter one year ago, falling from $193.81 million to $27.58 million.
-- Written by a member of TheStreet Ratings Staff
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