• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    RPC (RES) Is Down 5.7% After Earnings Miss And Fraud Probe News - What's Changed

    Simply Wall St·04/04/2026 20:24:03
    Listen to the news
    • Recently, RPC, Inc. reported weaker-than-expected fourth-quarter and full-year 2025 results, including an 18% sequential decline in Support Services revenue driven by a 22% drop in rental tools demand, prompting a securities fraud investigation by the Portnoy Law Firm.
    • At the same time, easing geopolitical tensions between the U.S. and Iran pushed crude prices lower, weighing on oilfield services sentiment and compounding concerns already raised by RPC's softer Support Services performance.
    • We’ll now examine how the earnings disappointment and softer rental tools demand might influence RPC’s previously optimistic investment narrative.

    Rare earth metals are the new gold rush. Find out which 26 stocks are leading the charge.

    RPC Investment Narrative Recap

    To own RPC, you need to believe that its mix of pressure pumping, wireline and support services can earn through cycles while technology investments offset pricing and activity swings. The latest earnings miss and sharp drop in rental tools demand speak directly to that thesis, because they hit near term utilization and margins. Coupled with softer oilfield sentiment after the crude pullback, the most important short term catalyst and biggest risk now both center on how quickly Support Services can stabilize.

    The most relevant recent development is the weaker than expected Q4 and full year 2025 report, which included US$1,626.57 million in sales and a US$3.06 million Q4 net loss. That release crystallized many of the existing concerns around pricing pressure, volatile activity and capital intensity, and it is the same set of numbers now sitting at the heart of the Portnoy Law Firm’s securities fraud investigation and the market’s reassessment of RPC’s risk reward profile.

    But while the technology story is appealing, investors should also be aware that...

    Read the full narrative on RPC (it's free!)

    RPC’s narrative projects $1.7 billion revenue and $72.9 million earnings by 2028. This requires 5.4% yearly revenue growth and a $20.0 million earnings increase from $52.9 million today.

    Uncover how RPC's forecasts yield a $5.66 fair value, a 18% downside to its current price.

    Exploring Other Perspectives

    RES 1-Year Stock Price Chart
    RES 1-Year Stock Price Chart

    Before this setback, the most optimistic analysts were assuming revenue could reach about US$1.8 billion by 2028 and still saw risk in RPC’s slow fleet renewal, so it is worth comparing that upbeat view with how the latest rental tools weakness might force those expectations to be revisited.

    Explore 3 other fair value estimates on RPC - why the stock might be worth as much as 16% more than the current price!

    Decide For Yourself

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

    • A great starting point for your RPC research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
    • Our free RPC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RPC's overall financial health at a glance.

    Contemplating Other Strategies?

    Every day counts. These free picks are already gaining attention. See them before the crowd does:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.