Overview

* Helmerich & Payne fiscal Q3 net loss of of $163 mln due to $173 mln goodwill impairment

* Adjusted EPS for fiscal Q3 beats consensus, per LSEG data

* Co repaid $120 mln on $400 mln term loan, expects $200 mln by year-end

Outlook

* Helmerich & Payne expects Q4 direct margin for North America Solutions between $230-$250 mln

* Company anticipates Q4 North America Solutions rig count to be approximately 138-144 rigs

* International Solutions Q4 direct margin expected between $22-$32 mln

* Offshore Solutions Q4 direct margin forecasted between $22-$30 mln

* Gross capital expenditures for FY 2025 expected to be $380-$395 mln

Result Drivers

* GOODWILL IMPAIRMENT - $173 mln impairment charge affected overall results, including $128 mln from KCAD acquisition

* NORTH AMERICA SOLUTIONS - Operating income rose to $158 mln, with stable direct margins despite lower rig activity

* INTERNATIONAL SOLUTIONS - Operating loss widened due to KCAD acquisition impact, but direct margins exceeded guidance expectations

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $0.22 $0.21

Adjusted (11

EPS Analysts

)

Q3 Net -$163

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the oil & gas drilling peer group is "buy."

* Wall Street's median 12-month price target for Helmerich and Payne Inc ( HP ) is $20.00, about 22% above its August 5 closing price of $15.61

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)