Helmerich & Payne's stock has dropped over 30%, now presenting a potential buying opportunity. The transformative acquisition of KCA Deutag enhances international growth, scale, and cash flow, yet the market hasn't priced in these benefits. Despite short-term headwinds and a credit rating downgrade, the company's efficient, high-tech rigs and resilient margins signal long-term profitability.
HP is a dominant player in land and offshore drilling, with the youngest and most efficient rig fleet.
The PC and printer maker saw its sales slump after a pandemic-induced boom.
HP is positioned for a potential rebound in 2025 due to Windows 10's end-of-life and the rise of AI PCs. Despite recent underperformance compared to competitors, HP is undervalued, presenting a buying opportunity ahead of earnings. EPS estimates are pessimistic ahead of earnings, low expectations set the stage for potential upside surprise.
HP's Q1 2025 results show that the North America Solutions segment outperforms, but the International Solutions segment lags.
Helmerich & Payne, Inc. (NYSE:HP ) Q1 2025 Earnings Conference Call February 6, 2025 11:00 AM ET Company Participants Dave Wilson - VP of IR John Lindsay - President and CEO Kevin Vann - SVP and CFO Conference Call Participants David Smith - Pickering Energy Partners Doug Becker - Capital One Saurabh Pant - Bank of America Merrill Lynch Keith Mackey - RBC Capital Markets Kurt Hallead - Benchmark Waqar Syed - ATB Capital Markets Operator Good day, everyone, and welcome to today's Helmerich & Payne's Fiscal First Quarter Earnings Call. At this time all participants are in listen-only mode, later you'll have the opportunity to ask questions during the question and answer session.
Helmerich & Payne (HP) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.97 per share a year ago.
Helmerich & Payne (HP 1.84%), a leading oil and natural gas drilling company, delivered mixed fiscal 2025 first-quarter results on Feb. 5.
Helmerich & Payne (HP) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
HP's revenues in the upcoming quarter are expected to have increased, driven by growth in North America Solutions, Offshore Gulf of Mexico and Other segments.
HP's acquisition of KCA Deutag marks a milestone, positioning it as a global drilling powerhouse and providing a robust geographic and operational mix.
HP faces headwinds in its North American Solutions segment, which accounts for almost 90% of revenues.