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Peek into Oil & Gas Drilling Earnings on Aug 2: NBR & More

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The Q2 earnings is in full swing and as many as 317 S&P 500 members have already reported their quarterly results. As we evaluate the results of these companies, we notice a slight sequential improvement in the growth pace. However, growth for the benchmark S&P 500 index is likely to be negative for the fifth quarter in a row. Eight of the 16 Zacks sectors (as of Jul 29) are projected to underperform.

Total earnings for these 317 companies are down 3.3% year over year due to 0.9% lower revenues. Of these, 72.9% beat earnings per share (EPS) estimates and 53.6% surpassed top-line expectations. The earnings of the companies having reported from the energy sector so far are down 76.5% year over year due to 24.6% lower revenues.

Per the Earnings Trends report, the general outlook for energy sector remains bearish as it is expected to register a massive 84% year-over-year decrease in earnings due to a 26% plunge in revenues. Excluding the impact of the energy sector, the S&P 500 index would witness earnings growth of 0.3%.

Meanwhile, let’s have a look at how some of these other energy companies are poised ahead of the scheduled announcements.

Nabors Industries Ltd. (NBR - Free Report) is set to release Q3 results on Aug 2, after the market closes. The company has an Earnings ESP of +6.82% and a Zacks Rank #3 (Hold). The Most Accurate estimate stands at a loss of 41 cents and the Zacks Consensus Estimate stands at a loss of 44 cents.

NABORS IND Price and EPS Surprise

NABORS IND Price and EPS Surprise | NABORS IND Quote

Given that Nabors Industries has a Zacks Rank #3 and a positive Earnings ESP investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions raise optimism for the stock. (Read more: more: Why Nabors Industries Might Surprise This Earnings Season)

Parker Drilling Co. is expected to release Q2 results on Aug 2, after the market closes. Our proven model does not conclusively show that Parker Drilling Co. is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for this to happen. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stands at a loss of 38 cents. Though the company has a Zacks Rank #3, a 0.00% Earnings ESP makes surprise prediction difficult.

PARKER DRILLING Price and EPS Surprise

PARKER DRILLING Price and EPS Surprise | PARKER DRILLING Quote

Rowan Companies plc is slated to release Q2 results on Aug 2. Rowan has an Earnings ESP of +2.74% as the Most Accurate estimate is pegged at 75 cents and the Zacks Consensus Estimate stands at 73 cents. This is very meaningful and a leading indicator of a likely positive earnings surprise. The company has a Zacks Rank # 3.

ROWAN COS PLC Price and EPS Surprise

ROWAN COS PLC Price and EPS Surprise | ROWAN COS PLC Quote

The combination of Rowan’s favorable Zacks Rank and a positive Earnings ESP makes us confident about an earnings beat.

Don’t miss out on our full earnings release articles for these two oil refining stocks, as the actual results might hold some surprises!

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