Revenue rose 37.9% from the year-ago quarter to $256.7 million in the first quarter, but missed the Capital IQ Consensus Estimate of $264.64 million. Hercules Offshore reported earnings of 22 cents a share for the quarter, beating the Capital IQ Consensus of 13 cents a share by 9 cents.
"First quarter results reflect a healthy jackup rig market in the U.S. Gulf of Mexico and fleet growth in our International Offshore segment," president and CEO John T. Rynd said in a press release. "Domestic drilling activity remains active, with the possibility of an improvement in demand later this year. Average dayrates in the U.S. Gulf of Mexico continue to rise as various rigs roll into higher paying contracts. Going forward, we expect stable pricing in the U.S. Gulf of Mexico, as all new contracts signed during the latest quarter were executed at current dayrates. Our International Offshore segment benefitted from the contributions of new assets, including the Hercules Triumph and Hercules Resilience."
Must read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates HERCULES OFFSHORE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: