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.
NOV Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
NOV Inc. (NOV - Free Report) reported fourth-quarter 2023 adjusted earnings of 54 cents per share, which beat the Zacks Consensus Estimate of 41 cents. Moreover, the bottom line improved from the year-ago quarter’s level of 26 cents due to improving execution, customer demand and pricing.
NOV’s total revenues of $2.34 billion surpassed the Zacks Consensus Estimate by 3.5% and rose 11.4% from the year-ago quarter’s figure of $2.1 billion.
The improvement in both earnings and revenues can be attributed to the robust performance of NOV’s segments.
Rig Technologies: The unit reported fourth-quarter revenues of $766 million, which beat our projection of $700.1 million. The top line also exceeded the prior-year quarter’s reported figure of $620 million.
Adjusted EBITDA of $109 million beat our estimate of $105.8 million. The actuals improved from $88 million recorded in the corresponding period of 2022, due to improved execution and spare part shipments from NOV’s aftermarket operations.
Wellbore Technologies: Revenues in this segment improved 8.1% year over year to $824 million. However, the figure missed our projection of $839.8 million.
Adjusted EBITDA of $160 million increased from the year-earlier quarter’s level of $146 million but missed our estimate of $175.7 million. This was a result of enhanced manufacturing efficiency in the segment's drill pipe operations, as well as improvements in the international and offshore markets.
Completion & Production Solutions: The segment’s revenues rose 8.8% to $803 million year over year. The top line also beat our projection of $782.7 million.
Adjusted EBITDA of $86 million increased from the year-ago quarter’s level of $66 million, primarily due to an improved product mix of international and offshore projects and better execution of NOV’s manufacturing plans. The figure, however, missed our estimate of $91 million.
Backlog
As of Dec 31, 2023, NOV’s capital equipment order backlog for Rig Technologies totaled $2.87 billion, including $214 million worth of new orders.
The company’s Completion & Production Solutions operations currently have a backlog worth $1.82 billion, including new orders worth $676 million.
Balance Sheet
As of Dec 31, 2023, the company had cash and cash equivalents of $816 million and long-term debt of $1.71 billion, with a debt-to-capitalization of 21.5%.
Outlook
NOV expects the growing adoption of NOV’s advanced technologies and continued growth in international and offshore markets to more than offset the declining demand from North America during 2024. The company also expects the improved efficiency in working capital and profitability to generate strong cash flow during 2024.
Subsea 7 is valued at $4.08 billion. The company currently pays a dividend of 38 cents per share, or 2.85%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Oceaneering International is worth $2.09 billion. In the past year, its shares have risen 3.3%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
Energy Transfer is valued at $44.97 billion. The company currently pays a dividend of $1.25 per share, or 8.74%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
NOV Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
NOV Inc. (NOV - Free Report) reported fourth-quarter 2023 adjusted earnings of 54 cents per share, which beat the Zacks Consensus Estimate of 41 cents. Moreover, the bottom line improved from the year-ago quarter’s level of 26 cents due to improving execution, customer demand and pricing.
NOV’s total revenues of $2.34 billion surpassed the Zacks Consensus Estimate by 3.5% and rose 11.4% from the year-ago quarter’s figure of $2.1 billion.
The improvement in both earnings and revenues can be attributed to the robust performance of NOV’s segments.
NOV Inc. Price, Consensus and EPS Surprise
NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote
Segmental Performances
Rig Technologies: The unit reported fourth-quarter revenues of $766 million, which beat our projection of $700.1 million. The top line also exceeded the prior-year quarter’s reported figure of $620 million.
Adjusted EBITDA of $109 million beat our estimate of $105.8 million. The actuals improved from $88 million recorded in the corresponding period of 2022, due to improved execution and spare part shipments from NOV’s aftermarket operations.
Wellbore Technologies: Revenues in this segment improved 8.1% year over year to $824 million. However, the figure missed our projection of $839.8 million.
Adjusted EBITDA of $160 million increased from the year-earlier quarter’s level of $146 million but missed our estimate of $175.7 million. This was a result of enhanced manufacturing efficiency in the segment's drill pipe operations, as well as improvements in the international and offshore markets.
Completion & Production Solutions: The segment’s revenues rose 8.8% to $803 million year over year. The top line also beat our projection of $782.7 million.
Adjusted EBITDA of $86 million increased from the year-ago quarter’s level of $66 million, primarily due to an improved product mix of international and offshore projects and better execution of NOV’s manufacturing plans. The figure, however, missed our estimate of $91 million.
Backlog
As of Dec 31, 2023, NOV’s capital equipment order backlog for Rig Technologies totaled $2.87 billion, including $214 million worth of new orders.
The company’s Completion & Production Solutions operations currently have a backlog worth $1.82 billion, including new orders worth $676 million.
Balance Sheet
As of Dec 31, 2023, the company had cash and cash equivalents of $816 million and long-term debt of $1.71 billion, with a debt-to-capitalization of 21.5%.
Outlook
NOV expects the growing adoption of NOV’s advanced technologies and continued growth in international and offshore markets to more than offset the declining demand from North America during 2024. The company also expects the improved efficiency in working capital and profitability to generate strong cash flow during 2024.
Zacks Rank and Key Picks
Currently, NOV carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Energy Transfer LP (ET - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 is valued at $4.08 billion. The company currently pays a dividend of 38 cents per share, or 2.85%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Oceaneering International is worth $2.09 billion. In the past year, its shares have risen 3.3%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
Energy Transfer is valued at $44.97 billion. The company currently pays a dividend of $1.25 per share, or 8.74%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.