Nabors Industries Ltd. (NBR Quick QuoteNBR - Free Report) is set to report second-quarter 2025 earnings on July 29, after the closing bell. The Zacks Consensus Estimate for the top line is pegged at $831.2 million and the same for the bottom line is pinned at a loss of $2.05.

Let us delve into the factors that might have influenced NBR’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of NBR’s Q1 Earnings & Surprise History

In the last reported quarter, the Hamilton-based oil and gas drilling service company’s loss per share was wider than the consensus mark. NBR posted a loss per share of $7.5, which was $2.64 wider than the Zacks Consensus Estimate for loss. This was primarily due to lower adjusted operating income from its U.S. Drilling segment. However, operating revenues of $736.2 million beat the Zacks Consensus Estimate of $718 million, largely due to stronger contributions from the International Drilling segment. NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 169.68%.

This is depicted in the graph below:       

Trend in NBR’s Estimate Revision

The Zacks Consensus Estimate for second-quarter 2025 earnings has not witnessed any movement in the past seven days. The estimated figure indicates a 52.21% year-over-year bottom-line increase. Moreover, the Zacks Consensus Estimate for revenues indicates an increase of 13.13% from the year-ago period’s level.

Factors to Consider Ahead of NBR’s Q2 Release

NBR’s revenues are likely to have improved in the quarter to be reported. The company makes money by providing essential services to the oil and gas industry. Its revenues are primarily driven by the demand for these services, which is influenced by various factors such as oil and gas prices, exploration and production activity, competition and economic conditions. The Zacks Consensus Estimate for second-quarter revenues is up from the year-ago quarter’s $743 million. This can be attributed to the higher contributions from NBR’s U.S. Drilling, International Drilling and Drilling Solutions segments.

The increase of NBR’s direct costs is expected to have affected its bottom-line performance. We expect the company’s depreciation and amortization costs to reach $201.1 million in the second quarter, which is up $41 million from the year-ago quarter’s level of $160.1 million. Its interest expense costs are expected to increase from $51.5 million to $56.8 million in the same time frame. Additionally, NBR’s general and administrative expenses are expected to rise from $62.2 million to $64.1 million during the same period.

What Does Our Model Predict for NBR?

Our proven Zacks model does not conclusively predict an earnings beat for Nabors Industries 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 is not the case here.

Earnings ESP of NBR: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate for this company, is -2.60%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NBR’s Zacks Rank: NBR currently carries a Zacks Rank #5 (Sell).

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 reporting cycle.

Antero Midstream Corporation (AM Quick QuoteAM - Free Report) is scheduled to release earnings on July 30. This Denver, CO-based oil and gas storage and transportation company has an Earnings ESP of +2.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, the Zacks Consensus Estimate for 2025 earnings has increased 1.1%. Valued at around $8.23 billion, Antero Midstream’s shares have gained 12.8% in a year. Antero Midstream owns and operates midstream energy assets in the Appalachian Basin, focusing on the transportation, processing and storage of natural gas and NGLs. The company operates two key segments: Gathering and Processing, which handles pipelines and processing plants, and Water Handling, which provides water transportation, storage and treatment services for oil and gas operations.

TC Energy Corporation (TRP Quick QuoteTRP - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #3. The firm is scheduled to release earnings on July 31.

TRP’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, delivering an average surprise of 4.83%. Valued at around $49.88 billion, TC Energy’s shares have gained 16.2% in a year. TC Energy, an energy infrastructure company from North America, owns and operates a vast network of natural gas pipelines, storage facilities and power generation assets. The company transports natural gas across Canada, the United States and Mexico, while also providing storage solutions and power generation, with a total capacity of 4,650 megawatts and 532 billion cubic feet of regulated natural gas storage.

Valaris Limited (VAL Quick QuoteVAL - Free Report) has an Earnings ESP of +6.03% and a Zacks Rank #3. The companyis valued at $3.46 billion. Valaris is scheduled to release earnings on July 31.

The firm is a global provider of offshore contract drilling services, operating in regions such as Brazil, the United Kingdom, the U.S. Gulf of Mexico, Australia and Angola. Valaris owns and operates a fleet of offshore drilling rigs, including drillships, semisubmersible rigs and jackup rigs. It also offers management services for rigs owned by third parties, serving a range of international and independent oil and gas clients.