News

Q3 EPS of $0.54, before $0.15 of 1X gains on a favorable tax ruling, vs. $0.73, before $0.12 of gains from asset sales, is $0.05 below our est. Results were hurt by substantially lower offshore rig utilization, partly offset by improved average offshore rig dayrates. RDC is well-primed to benefit from any increase in demand for high-specification jackups (should it occur), so we see long-term promise in the shares despite recent near-term weakness. Blending our net asset value with elevated peer multiples, we raise our 12-month target price by $2 to $25.