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Nabors (NBR) Q1 Earnings & Revenues Miss Estimates, Up Y/Y
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Nabors Industries Ltd. (NBR - Free Report) reported first-quarter 2018 adjusted loss from continuing operations of 29 cents per share, marginally wider than the Zacks Consensus Estimate of a loss of 28 cents due to increased expenses. However, the reported loss was narrower than the year-ago adjusted loss of 49 cents per share.
Quarterly revenues of $734.7 million missed the Zacks Consensus Estimate of $764 million due to the delay in completion and shipping of capital equipment from the Calgary property. However, the top line was 30.4% higher than the year-ago quarter level of $563.3 million, which can be attributed to higher rig activities in most of the segments.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
In the fourth quarter of 2017, the company had segregated the reporting for ‘Rig Services’ into two segments, namely ‘Drilling Solutions’ and ‘Rig Technologies.’
Nabors’ U.S. Drilling generated quarterly revenues of $241 million, up 48.8% from the year-ago level. This was mainly driven by an increase in dayrates and margins in Lower 48. Though U.S. operations incurred an operating loss of $19.7 million, it improved from a loss of $63.2 million in the prior-year period.
Canadian market witnessed 14.7% year-over-year growth in revenues to stand at $31.9 million in the quarter under review. Moreover, the segment’s quarterly loss of $592 thousand was narrower than the operating loss of $4 million in the year-ago quarter on the back of higher rig activities and increased average rig day margins.
International operations registered 9.1% year-over-year increase in revenues to $368.8 million. Further, operating income rose to $24.5 million in the quarter under review from the year-ago quarter’s figure of $12 million due to increased rig activities, partially offset by lower average margins.
Revenues at the Drilling Solutions segment increased to $62.6 million in first-quarter 2018 compared with $27.4 million figure recorded in the year-ago quarter. As such, the unit turned around from a loss of $978 thousand in the year-ago quarter to an operating profit of $8.7 million in the quarter under review. This turnaround can be attributed to higher activities across most of the segments’ product lines and greater contribution from Tesco’s certain services.
Revenues at the Rig Technologies segment increased to $64.7 million against the prior-year quarter’s level of $44.1 million. However, the segmental loss widened to $13 million compared with the prior-year loss of $8.1 million. The negative result was caused by delayed completion and shipping of capital equipment, due to manufacturing problems in the Calgary assets. The completion of these projects took place in the early-second quarter.
Expenses
Total costs and expenses increased 16% to $854.7 million from $736.5 million in the year-ago quarter on the back of direct, general/administrative and research/engineering expenses, and interest costs, all of which increased in the reported quarter.
Balance Sheet
As of Mar 31, 2018, the company had $393.6 million in cash and short-term investments, and $4,256.2 million in long-term debt, with a debt-to-capitalization ratio of approximately 60.9%.
Zacks Rank and Stocks to Consider
Hamilton, Bermuda-based Nabors Industries currently carries a Zacks Rank #3 (Hold).
Investors interested in the Energy sector can opt for some better-ranked stocks in the same space like Nine Energy Service, Inc. (NINE - Free Report) , Oasis Midstream Partners LP and CNOOC Limited (CEO - Free Report) . While Nine Energy Service sports a Zacks Rank #1 (Strong Buy), Oasis Midstream and CNOOC carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Nine Energy Service is an onshore service provider. For 2018, the bottom line is likely to be up 33.4%. In the last reported quarter, the company delivered a positive earnings surprise of 6.3%.
Houston, TX-based Oasis Midstream is an integrated energy partnership. The company’s revenues for 2018 are anticipated to improve 29.3% from the prior-year quarter, while its earnings are expected to increase 337.2%.
Hong Kong-based CNOOC is an integrated energy company. The company’s top line for 2018 is anticipated to improve 49% year over year, while its bottom line is expected to increase 82.8%.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Nabors (NBR) Q1 Earnings & Revenues Miss Estimates, Up Y/Y
Nabors Industries Ltd. (NBR - Free Report) reported first-quarter 2018 adjusted loss from continuing operations of 29 cents per share, marginally wider than the Zacks Consensus Estimate of a loss of 28 cents due to increased expenses. However, the reported loss was narrower than the year-ago adjusted loss of 49 cents per share.
Quarterly revenues of $734.7 million missed the Zacks Consensus Estimate of $764 million due to the delay in completion and shipping of capital equipment from the Calgary property. However, the top line was 30.4% higher than the year-ago quarter level of $563.3 million, which can be attributed to higher rig activities in most of the segments.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
Nabors Industries Ltd. Price, Consensus and EPS Surprise | Nabors Industries Ltd. Quote
Segments
In the fourth quarter of 2017, the company had segregated the reporting for ‘Rig Services’ into two segments, namely ‘Drilling Solutions’ and ‘Rig Technologies.’
Nabors’ U.S. Drilling generated quarterly revenues of $241 million, up 48.8% from the year-ago level. This was mainly driven by an increase in dayrates and margins in Lower 48. Though U.S. operations incurred an operating loss of $19.7 million, it improved from a loss of $63.2 million in the prior-year period.
Canadian market witnessed 14.7% year-over-year growth in revenues to stand at $31.9 million in the quarter under review. Moreover, the segment’s quarterly loss of $592 thousand was narrower than the operating loss of $4 million in the year-ago quarter on the back of higher rig activities and increased average rig day margins.
International operations registered 9.1% year-over-year increase in revenues to $368.8 million. Further, operating income rose to $24.5 million in the quarter under review from the year-ago quarter’s figure of $12 million due to increased rig activities, partially offset by lower average margins.
Revenues at the Drilling Solutions segment increased to $62.6 million in first-quarter 2018 compared with $27.4 million figure recorded in the year-ago quarter. As such, the unit turned around from a loss of $978 thousand in the year-ago quarter to an operating profit of $8.7 million in the quarter under review. This turnaround can be attributed to higher activities across most of the segments’ product lines and greater contribution from Tesco’s certain services.
Revenues at the Rig Technologies segment increased to $64.7 million against the prior-year quarter’s level of $44.1 million. However, the segmental loss widened to $13 million compared with the prior-year loss of $8.1 million. The negative result was caused by delayed completion and shipping of capital equipment, due to manufacturing problems in the Calgary assets. The completion of these projects took place in the early-second quarter.
Expenses
Total costs and expenses increased 16% to $854.7 million from $736.5 million in the year-ago quarter on the back of direct, general/administrative and research/engineering expenses, and interest costs, all of which increased in the reported quarter.
Balance Sheet
As of Mar 31, 2018, the company had $393.6 million in cash and short-term investments, and $4,256.2 million in long-term debt, with a debt-to-capitalization ratio of approximately 60.9%.
Zacks Rank and Stocks to Consider
Hamilton, Bermuda-based Nabors Industries currently carries a Zacks Rank #3 (Hold).
Investors interested in the Energy sector can opt for some better-ranked stocks in the same space like Nine Energy Service, Inc. (NINE - Free Report) , Oasis Midstream Partners LP and CNOOC Limited (CEO - Free Report) . While Nine Energy Service sports a Zacks Rank #1 (Strong Buy), Oasis Midstream and CNOOC carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Nine Energy Service is an onshore service provider. For 2018, the bottom line is likely to be up 33.4%. In the last reported quarter, the company delivered a positive earnings surprise of 6.3%.
Houston, TX-based Oasis Midstream is an integrated energy partnership. The company’s revenues for 2018 are anticipated to improve 29.3% from the prior-year quarter, while its earnings are expected to increase 337.2%.
Hong Kong-based CNOOC is an integrated energy company. The company’s top line for 2018 is anticipated to improve 49% year over year, while its bottom line is expected to increase 82.8%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>