National Oilwell (NOV) Q3 Earnings & Revenues Miss Estimates
Zacks Investment Research | Oct 29, 2019 07:52AM ET
National Oilwell Varco, Inc. (NYSE:NOV) incurred an adjusted loss of 61 cents per share in third-quarter 2019, declining from the Zacks Consensus Estimate for earnings of 10 cents. The bottom line also came in against the break-even earnings of the year-ago quarter as North American drillers scale back their production growth plans, leaving less scope of work for the likes of National Oilwell Varco. Particularly, weaker-than-expected revenue contribution from the Rig Technologies and the Wellbore Technologies segments caused this underperformance.
Rig Technologies segment’s revenues of $649 million missed the Zacks Consensus Estimate of $686 million due to lower North American onshore capital equipment sales.
Further, revenues from the Wellbore Technologies segment came in at $793 million, significantly below the Zacks Consensus Estimate of $839 million. The unit’s disappointing performance is due to soft demand for the unit’s products and services in a contracting North American market.
Moreover, total revenues of $2.13 billion lagged the Zacks Consensus Estimate of $2.17 billion and also dipped 0.9% from the year-ago period.
Segmental Performance
Rig Technologies: Revenues came in at $649 million compared with $637 million in the year-ago quarter, reflecting a 1.8% increase owing to higher offshore rig activity and better sales from aftermarket operations. Moreover, the unit’s adjusted EBITDA was $105 million, up 34.61% from $78 million in the year-ago quarter. This gain is backed by the company’s cost-cutting initiatives.
Wellbore Technologies: Segmental revenues fell 6.3% year over year to $793 million as a result of reduced drillpipe deliveries and waning demand for the unit’s short-cycle products. Meanwhile, the unit’s adjusted EBITDA of $133 million slipped from last year’s $135 million.
Completion & Production Solutions: Revenues at the segment were $728 million, down 1% from $735 million in the year-earlier quarter. The unit recorded adjusted EBITDA of $82 million, which is 17.2% lower than the year-ago figure of $99 million as customers continue to focus on minimal spending.
National Oilwell Varco, Inc. Price, Consensus and EPS Surprise
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