Tesco Corporation (USA) (NASDAQ:TESO) released the results from its first fiscal quarter before opening bell this morning, posting adjusted earnings of 21 cents per share on $121.4 million in revenue. Analysts had been expecting earnings of 25 cents per share on $137.5 million in revenue.

Tesco

Breaking down Tesco’s earnings

Net income for the quarter ending March 31 was $3 million or 7 cents per diluted share. Adjusted results exclude foreign exchange losses in Argentina, Russia and Venezuela, which Tesco Corporation (USA) (NASDAQ:TESO) said added up to $2.9 million or 8 cents per share. The adjusted number also excludes bad debt from two international customers, which amounted to $1.6 million or 4 cents per share, and $.9 million or 2 cents per share in tax-related charges in Latin America. In the same quarter a year ago, Tesco reported $5.5 million or 14 cents per share in net income and $8.8 million or 22 cents per share in adjusted net income

Tesco Corporation (USA) (NASDAQ:TESO) said revenue from its Top Drive division was $64.7 million, a decline from $81.9 million quarter over quarter and $75.6 million year over year. In the Tubular Service segment, revenue was $56.7 million, an increase from $55 million in the previous quarter and $51.1 million in the same quarter a year ago

Tesco initiates dividend, announces share buyback

This morning Tesco Corporation (USA) (NASDAQ:TESO) also initiated a quarterly cash dividend and authorized the repurchase of up to $100 million worth of its shares. The company’s board declared a 5 cent per share second quarter dividend. That dividend will be paid on June 2 to shareholders of record on May 22. Based on the number of outstanding shares at the end of March, The company estimates that it will be paying out about $2 million in dividends for the second quarter.

“We believe a balanced program of continuing to reinvest in organic growth projects while pursuing additional bolt-on acquisitions, combined with returning a portion of our free cash flow directly to shareholders through dividends and share buybacks, is the right strategy,” said Tesco Corporation (USA) (NASDAQ:TESO) President and CEO Julio M. Quintana in a statement. “Maintaining a strong financial structure will remain a fundamental element of our strategy.”