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Factors You Need to Know Ahead of NOV Q3 Earnings Release
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NOV Inc. (NOV - Free Report) is set to release third-quarter results on Oct 24, 2024. The current Zacks Consensus Estimate for earnings is pegged at 35 cents per share and that for revenues is pinned at $2.23 billion.
Let us delve into the factors that are likely to have influenced the oilfield service provider’s performance in the June quarter. But first, it is worth taking a look at NOV’s performance in the last reported quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment company beat the consensus mark on improving Energy Products and Services and Energy Equipment segments. NOV reported adjusted earnings per share of 57 cents, surpassing the Zacks Consensus Estimate of 35 cents. Revenues of $2.2 billion were up 1.5% from the consensus mark.
NOV beat the Zacks Consensus Estimate for earnings thrice in the trailing four quarters while missing once. The earnings surprise was 22.14%, on average.
The Zacks Consensus Estimate for third-quarter fiscal 2024 earnings has witnessed no upward revision and six downward movements in the past 30 days. The estimated figure indicates a 20.69% year-over-year increase. The Zacks Consensus Estimate for revenues indicates a 2.27% increase from the year-ago period.
Factors to Consider
NOV’s revenues are expected to have improved in the quarter to be reported. The company makes money by selling tools and equipment used to drill and produce oil and gas. These include things like drill bits, pipes and machinery for onshore and offshore drilling.
Our model predicts third-quarter revenues to have increased to $2218.1 million from the year-ago quarter’s $2185 million. The Energy Products and Services segment is expected to have generated $1053.7 million, up from $1034.0 million in the year-ago period. The Energy Equipment segment is expected to have reached $1,209.4 million, up from $1195 million in the year-ago period. These segments are the main drivers of the anticipated increase in revenues in the to-be-reported quarter.
On a somewhat bearish note, the increase in NOV’s costs might have dented the company’s to-be-reported bottom line. The company’s third-quarter cost of goods sold is likely to have totaled $1733.4 million, up 1.5% from the year-ago quarter’s level. The upward cost trajectory is expected to have continued in the third quarter due to the prevailing inflationary environment.
What Does Our Model Predict?
The proven Zacks model does not conclusively show an earnings beat for Patterson-UTI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -5.39%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PTEN currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this season.
The firm is scheduled to release earnings on Oct. 31. LNG’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed the other two, delivering an average surprise of 55.86%. Valued at around $41.22 billion, LNG has gained 7.5% in a year.
Canadian Natural Resources Limited (CNQ - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Oct. 31.
CNQ’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the remaining one, delivering an average surprise of 7.16%. Calgary-based CNQ is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas.
TC Energy Corporation (TRP - Free Report) has an Earnings ESP of +4.57% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Nov. 7. Valued at around $49.92 billion, TRP has gained 39.2% in a year.
The company is primarily focused on natural gas transmission through its 57,500-mile network of pipelines located in Canada, the United States and Mexico. TC Energy is also involved in other businesses, including power generation, natural gas storage and crude oil pipelines.
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Factors You Need to Know Ahead of NOV Q3 Earnings Release
NOV Inc. (NOV - Free Report) is set to release third-quarter results on Oct 24, 2024. The current Zacks Consensus Estimate for earnings is pegged at 35 cents per share and that for revenues is pinned at $2.23 billion.
Let us delve into the factors that are likely to have influenced the oilfield service provider’s performance in the June quarter. But first, it is worth taking a look at NOV’s performance in the last reported quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment company beat the consensus mark on improving Energy Products and Services and Energy Equipment segments. NOV reported adjusted earnings per share of 57 cents, surpassing the Zacks Consensus Estimate of 35 cents. Revenues of $2.2 billion were up 1.5% from the consensus mark.
NOV beat the Zacks Consensus Estimate for earnings thrice in the trailing four quarters while missing once. The earnings surprise was 22.14%, 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 third-quarter fiscal 2024 earnings has witnessed no upward revision and six downward movements in the past 30 days. The estimated figure indicates a 20.69% year-over-year increase. The Zacks Consensus Estimate for revenues indicates a 2.27% increase from the year-ago period.
Factors to Consider
NOV’s revenues are expected to have improved in the quarter to be reported. The company makes money by selling tools and equipment used to drill and produce oil and gas. These include things like drill bits, pipes and machinery for onshore and offshore drilling.
Our model predicts third-quarter revenues to have increased to $2218.1 million from the year-ago quarter’s $2185 million. The Energy Products and Services segment is expected to have generated $1053.7 million, up from $1034.0 million in the year-ago period. The Energy Equipment segment is expected to have reached $1,209.4 million, up from $1195 million in the year-ago period. These segments are the main drivers of the anticipated increase in revenues in the to-be-reported quarter.
On a somewhat bearish note, the increase in NOV’s costs might have dented the company’s to-be-reported bottom line. The company’s third-quarter cost of goods sold is likely to have totaled $1733.4 million, up 1.5% from the year-ago quarter’s level. The upward cost trajectory is expected to have continued in the third quarter due to the prevailing inflationary environment.
What Does Our Model Predict?
The proven Zacks model does not conclusively show an earnings beat for Patterson-UTI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -5.39%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PTEN currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this season.
Cheniere Energy, Inc. (LNG - Free Report) has an Earnings ESP of +5.35% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The firm is scheduled to release earnings on Oct. 31. LNG’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed the other two, delivering an average surprise of 55.86%. Valued at around $41.22 billion, LNG has gained 7.5% in a year.
Canadian Natural Resources Limited (CNQ - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Oct. 31.
CNQ’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the remaining one, delivering an average surprise of 7.16%. Calgary-based CNQ is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas.
TC Energy Corporation (TRP - Free Report) has an Earnings ESP of +4.57% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Nov. 7. Valued at around $49.92 billion, TRP has gained 39.2% in a year.
The company is primarily focused on natural gas transmission through its 57,500-mile network of pipelines located in Canada, the United States and Mexico. TC Energy is also involved in other businesses, including power generation, natural gas storage and crude oil pipelines.