Citi Lowers Estimates On Rowan Companies

According to Citi, Rowan Companies' RDC estimates are lowered on Middle East impacts in fleet status. Citi reported that it has reduced its EPS estimates due to Middle East delays and downtime in the new fleet status report. “Our 2011 EPS estimate is now $0.19 below the Street ($2.27 vs. $2.46 consensus). However, there is upside to our model if either the Ralph Coffman is delivered ahead of the 4Q11 plan (EPS upside: +$0.02 per month) or if Saudi Aramco waives the 50% day rate penalty on the rig (+$0.06 in 2011, +$0.13 in 2012).” Rowan Companies closed yesterday at $41.35.