Analyst Note
| Preston Caldwell |Helmerich & Payne posted 18% sequential revenue in the fourth quarter (the company's fiscal-year first quarter), driven by a 35% gain in the North America solutions segment owing to improvement in industry U.S. shale activity. This was offset by a 56% plunge in the small international segment. Adjusted operating income actually slipped lower, however, to negative $105 million from negative $103 million in the prior quarter. This was because operating income improvement in the North America solutions segment was just $5 million, despite $53 million higher revenue. Our fair value estimate and no-moat rating are unchanged following the results.