RPC (NYSE:RES) Releases Earnings Results, Misses Expectations By $0.03 EPS

RPC (NYSE:RES) issued its earnings results on Tuesday. The oil and gas company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.03), FiscalAI reports. The firm had revenue of $425.78 million during the quarter, compared to analyst estimates of $423.30 million. RPC had a net margin of 3.12% and a return on equity of 5.58%. The company’s revenue for the quarter was up 26.9% on a year-over-year basis. During the same quarter last year, the business posted $0.06 earnings per share.

Here are the key takeaways from RPC’s conference call:

• Q4 results showed a sequential revenue decline of 5% to $426 million, Adjusted EBITDA fell to $55.1 million and Adjusted diluted EPS was $0.04 as margins compressed 230 basis points.
• The company changed its accounting for wireline cables in Q4 to expense them (instead of capitalizing), increasing cost of revenues and reducing CapEx but with no impact to free cash flow and contributing $0.06 of EPS adjustments.
• RPC highlighted product and service wins that could drive future growth, including market-share gains from the A10 downhole motor, rollout of the Metal Max power section and UnPlug technology, plus snubbing growth and a new big-bore unit to target gas storage work.
• The balance sheet remains strong with roughly $210 million of cash, no revolver borrowings, roughly $52.9 million of free cash flow after CapEx (year-to-date), and management says it will use this flexibility for selective M&A, capex and potential buybacks.

RPC Trading Down 17.4%

RES stock opened at $5.47 on Wednesday. RPC has a 52 week low of $4.10 and a 52 week high of $6.85. The company has a market capitalization of $1.21 billion, a PE ratio of 23.76 and a beta of 0.72. The company’s 50-day simple moving average is $5.83 and its 200 day simple moving average is $5.15. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.31 and a current ratio of 2.78.

RPC Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be paid a $0.04 dividend. The ex-dividend date is Tuesday, February 10th. This represents a $0.16 annualized dividend and a dividend yield of 2.9%. RPC’s dividend payout ratio is 69.57%.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on RES. Wall Street Zen raised RPC from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Piper Sandler reaffirmed an “underweight” rating on shares of RPC in a report on Thursday, December 18th. Susquehanna lifted their price objective on shares of RPC from $5.50 to $6.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 7th. Citigroup increased their price objective on shares of RPC from $5.75 to $6.00 and gave the company a “neutral” rating in a research report on Thursday, December 11th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of RPC in a research note on Monday, December 29th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $5.25.

Key Headlines Impacting RPC

Here are the key news stories impacting RPC this week:

• Positive Sentiment: Revenue growth: Q4 revenue rose ~26.9% year-over-year, showing demand recovery in services and supporting top-line momentum. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: Strategic investment: RPC made a minority investment in Topcon Solutions Stores to expand its position in construction technology — a potential diversification path and long-term revenue adjacency. Business Wire: Investment in Topcon
• Neutral Sentiment: 2026 capex range: RPC outlined $150M–$180M of planned capital spending to expand technology and maintain flexibility — this supports growth initiatives but raises near-term cash deployment. Seeking Alpha: 2026 CapEx Guidance
• Neutral Sentiment: Earnings call transparency: Management hosted the Q4 call and published a transcript with operational detail; useful for judging margin drivers and backlog but no major guidance swing was introduced. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: EPS miss: RPC reported $0.04 EPS for Q4, below consensus (~$0.07), which is the primary driver of the stock decline as investors penalize the profit shortfall despite revenue strength. Zacks: Earnings Miss
• Negative Sentiment: Profitability and valuation pressures: Net margin and ROE remain modest, analysts’ price targets are clustered around ~$6.0 (mixed), and institutional position changes cited by data providers show notable sell-offs by some large funds — all weighing on sentiment. Quiver Quant: Q4 Release & Institutional Moves

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. EverSource Wealth Advisors LLC raised its position in shares of RPC by 220.6% in the second quarter. EverSource Wealth Advisors LLC now owns 6,533 shares of the oil and gas company’s stock valued at $31,000 after buying an additional 4,495 shares in the last quarter. Tower Research Capital LLC TRC increased its stake in RPC by 243.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,681 shares of the oil and gas company’s stock worth $41,000 after acquiring an additional 6,153 shares during the period. Mercer Global Advisors Inc. ADV acquired a new position in RPC in the 3rd quarter valued at $72,000. Osaic Holdings Inc. lifted its position in shares of RPC by 63,244.0% during the 2nd quarter. Osaic Holdings Inc. now owns 15,836 shares of the oil and gas company’s stock valued at $75,000 after acquiring an additional 15,811 shares during the period. Finally, Man Group plc acquired a new stake in shares of RPC during the 2nd quarter worth $79,000. Institutional investors and hedge funds own 41.06% of the company’s stock.

About RPC

RPC, Inc (NYSE: RES) provides essential equipment and services to companies engaged in the exploration, production and maintenance of oil and natural gas wells. The firm operates as an equity interest holding company, partnering with a network of independent service businesses to deliver a comprehensive suite of offerings for well completion and production operations.

Through its affiliated service companies, RPC offers pressure pumping and fracturing services, coiled tubing and nitrogen pumping, downhole tools and telemetry solutions, well intervention and workover services, along with rental tools and supply-chain logistics.