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.
Why Is Nov Inc. (NOV) Up 8% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Nov Inc. (NOV - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nov Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NOV Reports Q1 Loss Wider Than Expected
NOV 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 14.2% due to these changes.
VGM Scores
Currently, Nov Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nov Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Nov Inc. (NOV) Up 8% Since Last Earnings Report?
A month has gone by since the last earnings report for Nov Inc. (NOV - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nov Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NOV Reports Q1 Loss Wider Than Expected
NOV 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 14.2% due to these changes.
VGM Scores
Currently, Nov Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nov Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.