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NOV to Report Q4 Earnings: Is the Stage Set for a Beat?
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NOV Inc. (NOV - Free Report) is set to release fourth-quarter results on Feb 6. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 15 cents per share on revenues of $1.8 billion.
Let’s delve into the factors that might have influenced the oilfield service provider’s performance in the December quarter. But it’s worth taking a look at NOV’s previous-quarter results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment company missed the consensus mark due to escalation in expenses in the form of provision for income taxes. NOV had reported adjusted earnings per share of 8 cents, well below the Zacks Consensus Estimate of 15 cents. However, revenues of $1.9 billion came in 4.2% above the consensus mark, primarily due to better-than-expected performances in major segments.
NOV missed the Zacks Consensus Estimate for earnings thrice in the last four quarters and beat in the other, resulting in an earnings surprise of -0.8%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 483.3% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 28.3% increase from the year-ago period.
Factors to Consider
In the third quarter of 2022, the company’s Rig Technologies segment generated revenues of $511 million, up 10.6% sequentially. The positive momentum is most likely to have continued in the fourth quarter, thanks to impressive sales of offshore wind turbine installation vessel packages and growing demand for its aftermarket operations. Considering the improved operating environment, the Zacks Consensus Estimate for the fourth-quarter revenues of Rig Technologies is pegged at $550 million, indicating an increase of 7.6% from the September quarter.
NOV is also expected to have benefited from a powerful performance from its Wellbore Technologies unit. The company’s third-quarter segment revenues increased to $741 million from $666 million in the previous three-month period. With more drilling work, improved pricing and better execution, the favorable revenue story is likely to have continued in the to-be-reported quarter. As a reflection of this, the consensus mark for fourth-quarter Wellbore Technologies revenues stands at $768 million, suggesting a rise of 3.6% from the quarter ago.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for NOV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NOV has an Earnings ESP of +17.39% and a Zacks Rank #3.
Other Stocks to Consider
NOV is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Patterson-UTI Energy (PTEN - Free Report) has an Earnings ESP of +5.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 8.
Patterson-UTI Energy topped the Zacks Consensus Estimate by an average of 169.2% in the trailing four quarters, including a 47.4% beat in the last reported quarter. Valued at around $3.6 billion, PTEN has gained 60% in a year.
Sunoco LP (SUN - Free Report) has an Earnings ESP of +1.95% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 15.
Sunoco beat the Zacks Consensus Estimate for earnings in two of the last four quarters. It has a trailing four-quarter earnings surprise of 28.8%, on average. Valued at around $4.7 billion, SUN has gained 2.3% in a year.
Antero Midstream Corporation (AM - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 15.
For 2023, Antero Midstream has a projected earnings growth rate of 5.9%. Valued at around $5.2 billion, AM has gained 5% in a year.
Image: Bigstock
NOV to Report Q4 Earnings: Is the Stage Set for a Beat?
NOV Inc. (NOV - Free Report) is set to release fourth-quarter results on Feb 6. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 15 cents per share on revenues of $1.8 billion.
Let’s delve into the factors that might have influenced the oilfield service provider’s performance in the December quarter. But it’s worth taking a look at NOV’s previous-quarter results first.
Highlights of Q3 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment company missed the consensus mark due to escalation in expenses in the form of provision for income taxes. NOV had reported adjusted earnings per share of 8 cents, well below the Zacks Consensus Estimate of 15 cents. However, revenues of $1.9 billion came in 4.2% above the consensus mark, primarily due to better-than-expected performances in major segments.
NOV missed the Zacks Consensus Estimate for earnings thrice in the last four quarters and beat in the other, resulting in an earnings surprise of -0.8%, on average. This is depicted in the graph below:
NOV Inc. Price and EPS Surprise
NOV Inc. price-eps-surprise | NOV Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained the same in the last seven days. The estimated figure indicates a 483.3% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 28.3% increase from the year-ago period.
Factors to Consider
In the third quarter of 2022, the company’s Rig Technologies segment generated revenues of $511 million, up 10.6% sequentially. The positive momentum is most likely to have continued in the fourth quarter, thanks to impressive sales of offshore wind turbine installation vessel packages and growing demand for its aftermarket operations. Considering the improved operating environment, the Zacks Consensus Estimate for the fourth-quarter revenues of Rig Technologies is pegged at $550 million, indicating an increase of 7.6% from the September quarter.
NOV is also expected to have benefited from a powerful performance from its Wellbore Technologies unit. The company’s third-quarter segment revenues increased to $741 million from $666 million in the previous three-month period. With more drilling work, improved pricing and better execution, the favorable revenue story is likely to have continued in the to-be-reported quarter. As a reflection of this, the consensus mark for fourth-quarter Wellbore Technologies revenues stands at $768 million, suggesting a rise of 3.6% from the quarter ago.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for NOV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NOV has an Earnings ESP of +17.39% and a Zacks Rank #3.
Other Stocks to Consider
NOV is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Patterson-UTI Energy (PTEN - Free Report) has an Earnings ESP of +5.53% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 8.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson-UTI Energy topped the Zacks Consensus Estimate by an average of 169.2% in the trailing four quarters, including a 47.4% beat in the last reported quarter. Valued at around $3.6 billion, PTEN has gained 60% in a year.
Sunoco LP (SUN - Free Report) has an Earnings ESP of +1.95% and a Zacks Rank #1. The firm is scheduled to release earnings on Feb 15.
Sunoco beat the Zacks Consensus Estimate for earnings in two of the last four quarters. It has a trailing four-quarter earnings surprise of 28.8%, on average. Valued at around $4.7 billion, SUN has gained 2.3% in a year.
Antero Midstream Corporation (AM - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 15.
For 2023, Antero Midstream has a projected earnings growth rate of 5.9%. Valued at around $5.2 billion, AM has gained 5% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.