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NEW YORK (TheStreet) -- Shares of Rowan Cos. (RDC) are slipping 7.58% to $13.42 late Tuesday morning after the company posted weaker-than-expected earnings for the 2016 second quarter.

Before today's opening bell, the provider of offshore contract drilling services reported adjusted earnings of 75 cents per share, while analysts were looking for earnings of 81 cents per share.

Revenue jumped 20% to $611.9 million from last year and was above analysts' estimates of $489.2 million.

"Our ability to add significant backlog in a challenging market environment is a testament to our outstanding crews," CEO Tom Burke said in a statement.

"We ended the second quarter with our lowest total recordable incident rate (TRIR) on record and our operational downtime was less than 2% for our fleet," he added.

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Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins.

But the team also finds weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: RDC

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