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NOV's Loss Narrower Than Expected in Q2, Revenues Surpass

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NOV Inc. (NOV - Free Report) reported adjusted loss of 4 cents per share for second-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of 13 cents and the year-ago quarter’s loss of 7 cents. This upside could be attributed to better-than-expected sales from the Rig Technologies and the Wellbore Technologies segments.

Total revenues of $1.42 billion outpaced the Zacks Consensus Estimate by 3.42%. However, the top line dipped 5.3% from the year-ago number of $1.5 billion due to weakness in the Completion & Production Solutions units as a result of operational troubles from coronavirus-induced restrictions.

Segmental Performances

Rig Technologies:  Revenues summed $487 million, which surpassed the Zacks Consensus Estimate of $433 million and compared favorably with the year-ago quarter’s $476 million owing to the inclusion of $74 million associated with the final settlement stemming from the cancellation of offshore rig contracts. The unit’s adjusted EBITDA of $75 million outpaced the Zacks Consensus Estimate of $13.69 million and increased from the year-earlier quarter’s $14 million.

Wellbore Technologies:  Segmental revenues of $463 million outpaced the Zacks Consensus Estimate of $451 million and compared favorably with the year-ago quarter’s $442 million on the back of increased North American activity levels and a marginal progress in the international markets. The unit’s adjusted EBITDA of $63 million surpassed the Zacks Consensus Estimate of $52 million and exceeded the year-earlier quarter’s $42 million.

Completion & Production Solutions:  Revenues of $497 million missed the Zacks Consensus Estimate of $531 million and also dropped 19% from $611 million in the year-earlier quarter. This downside could be attributed to coronavirus-triggered constraints. The unit recorded adjusted EBITDA of $4 million, missing the Zacks Consensus Estimate of $18.66 million and declining from the year-ago quarter’s figure of $68 million.

NOV Inc. Price, Consensus and EPS Surprise

NOV Inc. Price, Consensus and EPS Surprise

NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote

Backlog

Capital equipment order backlog for Rig Technologies was $2.66 billion as of Jun 30, 2021 including $232 million worth of new orders.

The Completion & Production Solutions’ backlog for capital equipment orders totalled $1 billion at the end of the second quarter comprising $462 million of new orders.

Balance Sheet

As of Jun 30, 2021, the company had cash and cash equivalents of $1.6 billion and a long-term debt of $1.69 billion. The total debt-to-total capitalization was 24.6%. The company has $2 billion available under its revolving credit facility.

Zacks Rank & Key Picks

National Oilwell carries a Zacks Rank #3 (Hold), currently. Some better-ranked players in the energy space are Matador Resources Company (MTDR - Free Report) , Devon Energy Corporation (DVN - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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