On Aug 2, Nabors Industries Ltd. (NBR - Free Report) reported second-quarter 2016 adjusted loss from continuing operations of 26 cents per share, significantly narrower than the Zacks Consensus Estimate of a loss of 43 cents. The lower-than-expected quarterly loss may be attributed to aggressive cost reduction. Notably, the company’s reported figure was wider than the year-ago adjusted loss of 14 cents per share.
Total revenue of $517.1 million came in above the Zacks Consensus Estimate of $503 million but plunged almost 40.1% from $863 million in second-quarter 2015.
Nabors’ U.S. operations recorded quarterly revenues of $140.3 million, down 56.3% from the year-ago level. The unit slipped to an operating loss of $48.3 million from a profit of $31.4 million in the prior-year period.
The Canadian market witnessed a year-over-year decline of 69.2% in revenues and recorded sales of $6.6 million. Moreover, the segment’s quarterly loss of $10.8 million was wider than the operating loss of $8.3 million in the year-ago quarter. Lower rig activity caused the deterioration.
Nabors’ international operations saw a 12.5% year over year decline in revenue generation to $401 million. Operating income plunged 35.5% from second-quarter 2015 to $53.9 million.
Revenues at the Rig Services segment decreased 61% from the prior-year quarter to $39.2 million. The unit incurred loss of $19.7 million, substantially wider than a loss of $1.6 million in the year-earlier quarter.
Direct Cost
The direct expenses related to operations came at $341.3 million, down 30.1% from the year-ago quarter.
Balance Sheet
As of Jun 30, 2016, the company had $255.9 million in cash and short-term investments and $3,503.2 million in long-term debt, with a debt-to-capitalization ratio of approximately 48.5%.
Zacks Rating
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 stocks in the oil and gas sector include GeoPark Limited (GPRK - Free Report) , Sasol Ltd. (SSL - Free Report) and North Atlantic Drilling Limited . All these sport a Zacks Rank #1 (Strong Buy).
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On Aug 2, Nabors Industries Ltd. (NBR - Free Report) reported second-quarter 2016 adjusted loss from continuing operations of 26 cents per share, significantly narrower than the Zacks Consensus Estimate of a loss of 43 cents. The lower-than-expected quarterly loss may be attributed to aggressive cost reduction. Notably, the company’s reported figure was wider than the year-ago adjusted loss of 14 cents per share.
Total revenue of $517.1 million came in above the Zacks Consensus Estimate of $503 million but plunged almost 40.1% from $863 million in second-quarter 2015.
Nabors’ U.S. operations recorded quarterly revenues of $140.3 million, down 56.3% from the year-ago level. The unit slipped to an operating loss of $48.3 million from a profit of $31.4 million in the prior-year period.
The Canadian market witnessed a year-over-year decline of 69.2% in revenues and recorded sales of $6.6 million. Moreover, the segment’s quarterly loss of $10.8 million was wider than the operating loss of $8.3 million in the year-ago quarter. Lower rig activity caused the deterioration.
Nabors’ international operations saw a 12.5% year over year decline in revenue generation to $401 million. Operating income plunged 35.5% from second-quarter 2015 to $53.9 million.
Revenues at the Rig Services segment decreased 61% from the prior-year quarter to $39.2 million. The unit incurred loss of $19.7 million, substantially wider than a loss of $1.6 million in the year-earlier quarter.
Direct Cost
The direct expenses related to operations came at $341.3 million, down 30.1% from the year-ago quarter.
Balance Sheet
As of Jun 30, 2016, the company had $255.9 million in cash and short-term investments and $3,503.2 million in long-term debt, with a debt-to-capitalization ratio of approximately 48.5%.
Zacks Rating
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 stocks in the oil and gas sector include GeoPark Limited (GPRK - Free Report) , Sasol Ltd. (SSL - Free Report) and North Atlantic Drilling Limited . All these sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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