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Nabors (NBR) Q3 Loss Wider Than Expected, Revenues Miss
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On Oct 25, Nabors Industries Ltd. (NBR - Free Report) reported third-quarter 2016 adjusted loss from continuing operations of 35 cents per share, wider than the Zacks Consensus Estimate of a loss of 33 cents. The wider-than-expected quarterly loss may be attributed to lower rig activity. The quarterly figure was also wider than the year-ago adjusted loss of 14 cents per share.
Total revenue of $520 million came in below the Zacks Consensus Estimate of $550 million and also plunged almost 35.9% from $812.4 million in third-quarter 2015.
Nabors’ U.S. operations generated quarterly revenues of $116.1 million, down 55.3% from the year-ago level. The deterioration stemmed from an operating loss of $58.9 million as against a loss of $14 million in the prior-year period.
The Canadian market witnessed a year-over-year decline of 65.2% in revenues and recorded sales of $10.4 million. Moreover, the segment’s quarterly loss of $10.2 million was substantially wider than an operating loss of $4.1 million in the year-ago quarter. Lower rig activity was the primary reason behind the deterioration.
Nabors’ international operations saw a 29.6% year-over-year decline in revenues to $363.6 million. Operating income plunged 41.1% from third-quarter 2015 to $43.6 million.
Revenues at the Rig Services segment decreased 19.9% from the prior-year quarter to $58.9 million. The unit incurred loss of $12.9 million, wider than a loss of $10.4 million in the year-earlier quarter.
Direct Cost
Direct expenses related to operations came in at $306.4 million, down 40.9% from the year-ago quarter.
Balance Sheet
As of Sep 30, 2016, the company had $200.7 million in cash and short-term investments and $3,475.9 million in long-term debt, with a debt-to-capitalization ratio of approximately 49.1%.
Zacks Rank
Nabors currently has a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Enviva Partners, LP (EVA - Free Report) , Ultra Petroleum Corp. and CONE Midstream Partners LP . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Enviva Partners posted an average positive earnings surprise of 0.19%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the current quarter, CONE Midstream Partners posted a positive earnings surprise of 19.38%.
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Nabors (NBR) Q3 Loss Wider Than Expected, Revenues Miss
On Oct 25, Nabors Industries Ltd. (NBR - Free Report) reported third-quarter 2016 adjusted loss from continuing operations of 35 cents per share, wider than the Zacks Consensus Estimate of a loss of 33 cents. The wider-than-expected quarterly loss may be attributed to lower rig activity. The quarterly figure was also wider than the year-ago adjusted loss of 14 cents per share.
Total revenue of $520 million came in below the Zacks Consensus Estimate of $550 million and also plunged almost 35.9% from $812.4 million in third-quarter 2015.
Nabors’ U.S. operations generated quarterly revenues of $116.1 million, down 55.3% from the year-ago level. The deterioration stemmed from an operating loss of $58.9 million as against a loss of $14 million in the prior-year period.
The Canadian market witnessed a year-over-year decline of 65.2% in revenues and recorded sales of $10.4 million. Moreover, the segment’s quarterly loss of $10.2 million was substantially wider than an operating loss of $4.1 million in the year-ago quarter. Lower rig activity was the primary reason behind the deterioration.
NABORS IND Price, Consensus and EPS Surprise
NABORS IND Price, Consensus and EPS Surprise | NABORS IND Quote
Nabors’ international operations saw a 29.6% year-over-year decline in revenues to $363.6 million. Operating income plunged 41.1% from third-quarter 2015 to $43.6 million.
Revenues at the Rig Services segment decreased 19.9% from the prior-year quarter to $58.9 million. The unit incurred loss of $12.9 million, wider than a loss of $10.4 million in the year-earlier quarter.
Direct Cost
Direct expenses related to operations came in at $306.4 million, down 40.9% from the year-ago quarter.
Balance Sheet
As of Sep 30, 2016, the company had $200.7 million in cash and short-term investments and $3,475.9 million in long-term debt, with a debt-to-capitalization ratio of approximately 49.1%.
Zacks Rank
Nabors currently has a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Enviva Partners, LP (EVA - Free Report) , Ultra Petroleum Corp. and CONE Midstream Partners LP . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Enviva Partners posted an average positive earnings surprise of 0.19%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the current quarter, CONE Midstream Partners posted a positive earnings surprise of 19.38%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>