RPC plunges 19% on earnings miss, holiday slowdown
Oilfield services provider swings to Q4 loss as revenue drops 5% sequentially
RPC Inc. shares plunged 18.6% to $5.39 on Tuesday after the Atlanta-based oilfield services provider reported a fourth-quarter loss and missed earnings expectations, highlighting the impact of seasonal slowdowns in the energy services sector.
The company swung to a net loss of $3.1 million, or $0.02 per share, reversing from a year-earlier profit. On an adjusted basis, RPC earned $0.04 per share, missing the Zacks Consensus Estimate of $0.07 per share by 42.9%.
Revenue for the quarter ended December 31, 2025, reached $425.8 million, declining 5% sequentially from the third quarter due to what the company described as a holiday slowdown affecting activity across most of its service lines. Despite the quarterly decline, full-year revenue climbed to $1.63 billion, reflecting RPC's broader recovery trajectory in the oilfield services market.
The earnings shortfall represents a notable setback for RPC, which has consistently beaten revenue estimates in recent quarters but has struggled to match analysts' profit expectations. The company surpassed revenue forecasts in four consecutive quarters before Tuesday's report, while meeting earnings estimates only once during that period.
For the full year 2025, RPC reported net income of $32.1 million, or $0.15 per share, signaling the company's improving financial position despite the fourth-quarter challenges. The oilfield services sector has been benefiting from increased North American drilling activity as energy producers ramp up production.
RPC, which provides specialized equipment and services to upstream oil and gas companies, now faces pressure to demonstrate operational resilience. Analysts project earnings of $0.06 per share on $429 million in revenue for the current quarter, with full-year estimates calling for $0.28 in earnings per share on $1.73 billion in revenue.
The stock's sharp decline erodes nearly $335 million in market capitalization, leaving RPC valued at approximately $1.47 billion. Shares have traded between $4.00 and $6.85 over the past 52 weeks. Analysts maintain an average target price of $6.20, suggesting potential upside if the company can return to earnings growth in the coming quarters.
The Oil and Gas - Field Services industry, where RPC competes, currently ranks in the top 31% of Zacks industries, indicating a favorable operating environment for companies that can execute effectively. The sector's outperformance reflects robust demand from energy producers working to replenish reserves and expand output.
Investors will be focused on RPC's ability to mitigate seasonal volatility and improve operational efficiency as the company moves through 2026. The upcoming quarterly results will test whether the fourth-quarter earnings miss was primarily a temporary slowdown tied to holiday activity or indicative of broader challenges in RPC's service segments.