Helmerich & Payne Inc

HP: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$66.00	Mdzb	Vtpbvpdn

Helmerich & Payne Earnings: We Tweak Fair Value Estimate Downward by 2% Upon Further Review

Joshua Aguilar ,

Aug 15, 2024

After further reviewing the impact from Helmerich & Payne's fiscal third-quarter earnings report, we slightly decrease our fair value estimate to $46 from $49. The decrease from our initial Aug. 12 review is due to lower direct margins than we previously assumed, in line with guidance. For the North America Solutions segment—the company's largest at 88% of revenue—we now expect direct margins of $264 million for the fiscal third quarter, down just under 9% from $289 million. That said, our no-moat and Standard capital allocation ratings are unchanged.

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