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NOV Posts Wider-Than-Expected Q1 Loss on Weather Disruptions
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NOV Inc. (NOV - Free Report) reported adjusted loss of 28 cents per share for first-quarter 2021, wider than the Zacks Consensus Estimate of a loss of 23 cents. However, the year-ago bottom line was a profit of 14 cents per share. This downside could be attributed to weakness in the Completion & Production Solutions units as a result of weather disturbances, logistical troubles from coronavirus-induced restrictions in Southeast Asia and postponements of certain projects.
Total revenues of $1.25 billion outpaced the Zacks Consensus Estimate by 1.56% on the back of better-than-expected sales from the Rig Technologies and the Wellbore Technologies segments. However, the top line plunged 33.5% from the year-ago number of $1.88 billion.
Segmental Performance
Rig Technologies: Revenues summed $431 million, which surpassed the Zacks Consensus Estimate of $409 million but compared unfavorably with the year-ago quarter’s $557 million, thanks to a drop in orders, which induced lower capital equipment backlog. However, rising demand for offshore wind-related equipment and early development on the first two rigs to be installed at the NOV's new manufacturing facility in Saudi Arabia partly offset the revenue decline. The unit’s adjusted EBITDA of $13 million decreased from the year-earlier quarter’s $56 million.
Wellbore Technologies: Segmental revenues of $413 million outpaced the Zacks Consensus Estimate of $397 million but fell 40.2% year over year. The outperformance was led by improved drilling operations in Western Hemisphere, partially offset by weakness in the Eastern Hemisphere. Further, the unit’s adjusted EBITDA of $34 million deteriorated from the prior-year’s $103 million.
Completion & Production Solutions: Revenues of $439 million missed the Zacks Consensus Estimate of $476 million and also dropped 35% from $675 million in the year-earlier quarter. This downside could be attributed to weather woes, logistical blockades from coronavirus-triggered constraints in Southeast Asia and delays in certain projects. Also, shortage in the supply of acute global glass fiber hampered NOV’s fiberglass systems operations. The unit recorded adjusted EBITDA loss of $4 million, wider than the Zacks Consensus Estimate of a loss of $2.34 million. However, the year-ago figure was a profit of $71 million.
Capital equipment order backlog for Rig Technologies was $2.59 billion as of Mar 31, 2021 including $112 million worth of new orders.
The Completion & Production Solutions’ backlog for capital equipment orders totalled $810 million at the end of the first quarter comprising $338 million of new orders.
Balance Sheet
As of Mar 31, 2021, the company had cash and cash equivalents of $1.61 billion and a long-term debt of $1.67 billion. The total debt-to-total capitalization was 24.5%. The company has $2 billion available under its revolving credit facility.
Zacks Rank & Key Picks
National Oilwell carries a Zacks Rank #4 (Sell), currently.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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NOV Posts Wider-Than-Expected Q1 Loss on Weather Disruptions
NOV Inc. (NOV - Free Report) reported adjusted loss of 28 cents per share for first-quarter 2021, wider than the Zacks Consensus Estimate of a loss of 23 cents. However, the year-ago bottom line was a profit of 14 cents per share. This downside could be attributed to weakness in the Completion & Production Solutions units as a result of weather disturbances, logistical troubles from coronavirus-induced restrictions in Southeast Asia and postponements of certain projects.
Total revenues of $1.25 billion outpaced the Zacks Consensus Estimate by 1.56% on the back of better-than-expected sales from the Rig Technologies and the Wellbore Technologies segments. However, the top line plunged 33.5% from the year-ago number of $1.88 billion.
Segmental Performance
Rig Technologies: Revenues summed $431 million, which surpassed the Zacks Consensus Estimate of $409 million but compared unfavorably with the year-ago quarter’s $557 million, thanks to a drop in orders, which induced lower capital equipment backlog. However, rising demand for offshore wind-related equipment and early development on the first two rigs to be installed at the NOV's new manufacturing facility in Saudi Arabia partly offset the revenue decline. The unit’s adjusted EBITDA of $13 million decreased from the year-earlier quarter’s $56 million.
Wellbore Technologies: Segmental revenues of $413 million outpaced the Zacks Consensus Estimate of $397 million but fell 40.2% year over year. The outperformance was led by improved drilling operations in Western Hemisphere, partially offset by weakness in the Eastern Hemisphere. Further, the unit’s adjusted EBITDA of $34 million deteriorated from the prior-year’s $103 million.
Completion & Production Solutions: Revenues of $439 million missed the Zacks Consensus Estimate of $476 million and also dropped 35% from $675 million in the year-earlier quarter. This downside could be attributed to weather woes, logistical blockades from coronavirus-triggered constraints in Southeast Asia and delays in certain projects. Also, shortage in the supply of acute global glass fiber hampered NOV’s fiberglass systems operations. The unit recorded adjusted EBITDA loss of $4 million, wider than the Zacks Consensus Estimate of a loss of $2.34 million. However, the year-ago figure was a profit of $71 million.
NOV Inc. Price, Consensus and EPS Surprise
NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote
Backlog
Capital equipment order backlog for Rig Technologies was $2.59 billion as of Mar 31, 2021 including $112 million worth of new orders.
The Completion & Production Solutions’ backlog for capital equipment orders totalled $810 million at the end of the first quarter comprising $338 million of new orders.
Balance Sheet
As of Mar 31, 2021, the company had cash and cash equivalents of $1.61 billion and a long-term debt of $1.67 billion. The total debt-to-total capitalization was 24.5%. The company has $2 billion available under its revolving credit facility.
Zacks Rank & Key Picks
National Oilwell carries a Zacks Rank #4 (Sell), currently.
Some better-ranked players in the energy space are Whiting Petroleum Corporation , Diamondback Energy, Inc. (FANG - Free Report) and Laredo Petroleum, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>