Yahoo Finance NOV Q1 Earnings Preview: Here's Everything You Need to Know
NOV Inc. NOV is set to release first-quarter results on Apr 26. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of 22 cents per share on revenues of $2 billion.
Let’s delve into the factors that might have influenced the oilfield service provider’s performance in the March quarter. But it’s worth taking a look at NOV’s previous-quarter results first.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment company beat the consensus mark on an improving momentum in the international markets. NOV had reported net income per share of 26 cents, above the Zacks Consensus Estimate of 23 cents. Revenues of $2.1 billion also came in 6.5% above the consensus mark.
NOV beat the Zacks Consensus Estimate for earnings twice in the last four quarters and missed in the other two, resulting in an earnings surprise of 27.4%, 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 the first-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 269.2% jump year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 26.4% increase from the year-ago period.
Factors to Consider
One of NOV’s key segments — Rig Technologies — is expected to have benefited from impressive sales of offshore wind turbine installation vessel packages and growing demand for its aftermarket operations during the first quarter of 2023. As a result of this improved operating environment, the Zacks Consensus Estimate for the first-quarter revenues of Rig Technologies is pegged at $534 million, indicating an increase of 21.1% from the year-ago period.
NOV is also expected to have benefited from a powerful performance from its Wellbore Technologies unit, with more drilling work, improved pricing and better execution. As a reflection of this, the consensus mark for first-quarter Wellbore Technologies revenues stands at $764 million, suggesting a rise of 25.7% from the corresponding period of 2022.
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 fourth-quarter cost of goods sold totaled $1.6 billion, up 24% from the year-ago period. The upward cost trajectory is likely to have continued in the first quarter due to the prevailing inflationary environment.
What Does Our Model Say?
The proven Zacks model does not conclusively show that NOV is likely to beat estimates in the first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.23%.
Zacks Rank: NOV currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for NOV, here are some firms from the energy space that you may want to consider on the basis of our model:
Marathon Petroleum MPC has an Earnings ESP of +11.24% and a Zacks Rank #1. The firm is scheduled to release earnings on May 2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MPC’s 2023 earnings has been revised 15.3% upward over the past 60 days. Valued at around $57.5 billion, Marathon Petroleum has gained 39.2% in a year.
Canadian Natural Resources CNQ has an Earnings ESP of +3.80% and a Zacks Rank #3. The firm is scheduled to release earnings on May 4.
Canadian Natural Resources delivered a four-quarter average earnings surprise of 10.5%. Valued at around $67 billion, CNQ has lost 9.7% in a year.
TechnipFMC FTI has an Earnings ESP of +3.71% and a Zacks Rank #3. The firm is scheduled to release earnings on Apr 27.
For 2023, TechnipFMC has a projected earnings growth rate of 1,766.7%. Valued at around $5.9 billion, FTI has gained 52% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NOV Inc. (NOV) : Free Stock Analysis Report
TechnipFMC plc (FTI) : Free Stock Analysis Report
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
