Nabors Industries Earnings: Falls Short of Expectations

Although profit increased, S&P 500 (NYSE:SPY) component Nabors Industries Ltd.’s (NYSE:NBR) net income missed estimates in the most recent quarter. Nabors Industries conducts oil, gas and geothermal land drilling operations in the Americas, Caribbean, Middle East, Far East, Russia, and Africa.

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Nabors Industries Earnings Cheat Sheet for the Third Quarter

Results: Net income for Nabors Industries Ltd. rose to $75.7 million (20 cents per share) vs. $74.3 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 1.9% from the year-earlier quarter.

Revenue: Rose 1.8% to $1.67 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nabors Industries Ltd. fell short of the mean analyst estimate of 36 cents per share. It fell short of the average revenue estimate of $1.74 billion.

Quoting Management: Tony Petrello, Nabors’ Chairman and CEO, commented, “These results reflect improved operational performance in our US land well servicing, International and Canada operations. Unfortunately, a sharper than anticipated drop in US land drilling activity, the seasonal hurricane pause in the Gulf of Mexico, further seasonal slowing in Alaska, and reduced shipments in Canrig essentially offset those improvements. Net income also benefitted from a meaningful reduction in our effective tax rate, which we expect to be ongoing.”

Key Stats:

The company has now come in under analyst forecasts for three quarters in a row. It missed the mark by one cent in the second quarter and by 2 cents in the first quarter.

The company reported a profit last quarter, following a quarter of being in the red. The company booked a net loss of $134.1 million, or 46 cents per share, in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 50 cents a share to 38 cents over the last ninety days. The average estimate for the fiscal year is $1.75 per share, down from $1.99 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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