What Lies Ahead For National Oilwell (NOV) In Q4 Earnings?
Zacks Investment Research | Feb 02, 2020 10:56PM ET
National Oilwell Varco, Inc. (NYSE:NOV) is set to release fourth-quarter 2019 earnings results on Thursday Feb 6, after market closes.
The current Zacks Consensus Estimate for the to-be-reported quarter is pegged at earnings of 16 cents per share on expected revenues of $2.10 billion. There has been no change in estimates for the bottom line over the past 60 days.
Let’s delve into the factors that might have impacted the company’s performance in the December quarter.
Factors at Play
The backlog orders in the Completion & Production Solutions are likely to have increased in the fourth quarter owing to the year-over-year rise in drilling rig activities at the international and U.S. offshore resources. Such improvements in the drilling activities are expected to have mitigated the deteriorating market conditions in the U.S. completion markets, per the company.
The Zacks Consensus Estimate for fourth-quarter backlog orders from the Completion & Production units is pegged at $500 million, indicating an increase of 9.65% from the year-ago reported figure of $456 million.
However, the consensus mark for backlog orders from the Rig Technology unit stands at $300 million, implying a 25.5% drop from the year-ago reported number of $403 million. Meanwhile, National Oilwell expects EBITDA margins from the unit to be weak, primarily due to unfavourable business mix and delayed project closures. Evidently, the Zacks Consensus Estimate for fourth-quarter adjusted EBITDA from the Rig Technology unit is pegged at $89 million, suggesting a 12.75% fall from the year-ago reported figure of $102 million.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for National Oilwell this time around. The combination of a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.