S&P 500 (NYSE:SPY) component Nabors Industries (NYSE:NBR) will unveil its latest earnings on Tuesday, July 24, 2012. Nabors Industries conducts oil, gas and geothermal land drilling operations in the Americas, Caribbean, Middle East, Far East, Russia, and Africa.
Nabors Industries Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 39 cents per share, a rise of 69.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 47 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 46 cents during the last month. For the year, analysts are projecting net income of $2.02 per share, a rise of 25.5% from last year.
Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 49 cents per share versus a mean estimate of net income of 51 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 2 cents.
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A Look Back: In the first quarter, profit rose 61.9% to $134.1 million (46 cents a share) from $82.8 million (28 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 30.7% to $1.84 billion from $1.41 billion.
Wall St. Revenue Expectations: On average, analysts predict $1.74 billion in revenue this quarter, a rise of 27.9% from the year-ago quarter. Analysts are forecasting total revenue of $7.32 billion for the year, a rise of 19% from last year’s revenue of $6.15 billion.
Stock Price Performance: Between July 12, 2012 and July 18, 2012, the stock price rose $1.45 (11.2%), from $13 to $14.45. The stock price saw one of its best stretches over the last year between January 26, 2012 and February 7, 2012, when shares rose for nine straight days, increasing 12.9% (+$2.25) over that span. It saw one of its worst periods between July 28, 2011 and August 8, 2011 when shares fell for eight straight days, dropping 32.8% (-$8.80) over that span.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 40.2% over the last four quarters.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.98 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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