We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nabors (NBR) Misses on Q1 Earnings, Revenue Estimates
Read MoreHide Full Article
Drilling contractor Nabors Industries Ltd. (NBR - Free Report) reported first-quarter 2017 adjusted loss from continuing operations of 49 cents per share, wider than the Zacks Consensus Estimate of a loss of 34 cents on Apr 26. Further, the reported loss was also wider than the year-ago adjusted loss of 29 cents per share. Lost revenues and higher costs especially in the international markets led to weaker results.
Moreover, the quarterly revenues of $563 million also decreased from the year-ago figure of $598 million. This was mainly due to the decreased activities in the international markets. The top line also underperformed the Zacks Consensus Estimate of $570 million.
Post the earnings release, Nabors’s stock under the Zacks categorized Oil and Gas Drilling industry declined 10.14% to close at $10.55 on Apr 27.
Nabors’ U.S. operations generated quarterly revenues of $161.9 million, up 9% from the year-ago level. This was mainly driven by the increased rig count by 26% to 83 in the reported quarter in the Lower 48. However, the US operations recorded an operating loss of $63.2 million as against a loss of $47.5 million in the prior-year period.
The Canadian market witnessed 59% year-over-year growth in revenues and recorded sales of $27.8 million. Moreover, the segment’s quarterly loss of $4 million was narrower than an operating loss of $7.3 million in the year-ago quarter. Increased rig activity by 76% led to the improvement.
International operations registered 15.7% year-over-year decline in revenues to $338.2 million. International revenues fell owing to loss of revenues related to the recertification project in Saudi Arabia and reduced rig activities. Operating income plunged 74% from first-quarter 2016 to $12 million.
Revenues at the Rig Services segment increased 32.6% from the prior-year quarter to $71.4 million. This segment benefited primarily from growing customer demand for Nabors Drilling Solutions products and services. The unit incurred loss of $9.1 million, slightly narrower than a loss of $10.6 million in the year-ago quarter.
Direct Cost
Direct expenses related to operations came in at $387.6 million, up 6.2% from the year-ago quarter.
Balance Sheet
As of Mar 31, 2017, the company had $228.6 million in cash and short-term investments and $3,661.6 million in long-term debt, with a debt-to-capitalization ratio of approximately 53.5%.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
Barbados-based Nabors conducts oil, gas, and geothermal land drilling operations. The company offers a number of ancillary well site services, including oilfield management, engineering, transportation, construction, maintenance, well logging and other support services in select domestic and international markets. The company carries a Zacks Rank #3 (Hold).
Penn Virginia posted a positive average surprise of 36.67% in the last four quarters.
Bellatrix posted a positive average surprise of 58.54% in the last four quarters.
Cenovus posted a positive average surprise of 74.89% in the last four quarters.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Image: Bigstock
Nabors (NBR) Misses on Q1 Earnings, Revenue Estimates
Drilling contractor Nabors Industries Ltd. (NBR - Free Report) reported first-quarter 2017 adjusted loss from continuing operations of 49 cents per share, wider than the Zacks Consensus Estimate of a loss of 34 cents on Apr 26. Further, the reported loss was also wider than the year-ago adjusted loss of 29 cents per share. Lost revenues and higher costs especially in the international markets led to weaker results.
Moreover, the quarterly revenues of $563 million also decreased from the year-ago figure of $598 million. This was mainly due to the decreased activities in the international markets. The top line also underperformed the Zacks Consensus Estimate of $570 million.
Post the earnings release, Nabors’s stock under the Zacks categorized Oil and Gas Drilling industry declined 10.14% to close at $10.55 on Apr 27.
Nabors’ U.S. operations generated quarterly revenues of $161.9 million, up 9% from the year-ago level. This was mainly driven by the increased rig count by 26% to 83 in the reported quarter in the Lower 48. However, the US operations recorded an operating loss of $63.2 million as against a loss of $47.5 million in the prior-year period.
The Canadian market witnessed 59% year-over-year growth in revenues and recorded sales of $27.8 million. Moreover, the segment’s quarterly loss of $4 million was narrower than an operating loss of $7.3 million in the year-ago quarter. Increased rig activity by 76% led to the improvement.
International operations registered 15.7% year-over-year decline in revenues to $338.2 million. International revenues fell owing to loss of revenues related to the recertification project in Saudi Arabia and reduced rig activities. Operating income plunged 74% from first-quarter 2016 to $12 million.
Revenues at the Rig Services segment increased 32.6% from the prior-year quarter to $71.4 million. This segment benefited primarily from growing customer demand for Nabors Drilling Solutions products and services. The unit incurred loss of $9.1 million, slightly narrower than a loss of $10.6 million in the year-ago quarter.
Direct Cost
Direct expenses related to operations came in at $387.6 million, up 6.2% from the year-ago quarter.
Balance Sheet
As of Mar 31, 2017, the company had $228.6 million in cash and short-term investments and $3,661.6 million in long-term debt, with a debt-to-capitalization ratio of approximately 53.5%.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
Nabors Industries Ltd. Price, Consensus and EPS Surprise | Nabors Industries Ltd. Quote
Zacks Rank & Key Picks
Barbados-based Nabors conducts oil, gas, and geothermal land drilling operations. The company offers a number of ancillary well site services, including oilfield management, engineering, transportation, construction, maintenance, well logging and other support services in select domestic and international markets. The company carries a Zacks Rank #3 (Hold).
Better-ranked players in the broader industry include Penn Virginia Corp. , Bellatrix Exploration Ltd and Cenovus Energy Inc. (CVE - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penn Virginia posted a positive average surprise of 36.67% in the last four quarters.
Bellatrix posted a positive average surprise of 58.54% in the last four quarters.
Cenovus posted a positive average surprise of 74.89% in the last four quarters.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>