Nabors Industries Ltd. Earnings Cheat Sheet: Beats Estimates

S&P 500 (NYSE:SPY) component Nabors Industries Ltd. (NYSE:NBR) reported net income above Wall Street’s expectations for the second quarter. Nabors Industries Ltd. 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 Second Quarter

Results: Net income for the oil and gas drilling and exploration company rose to $192.4 million (65 cents per share) vs. $43.6 million (15 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Rose 40% to $1.36 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NBR beat the mean analyst estimate of 25 cents per share. It beat the average revenue estimate of $1.33 billion.

Quoting Management: Gene Isenberg, Nabors’ Chairman and CEO, commented, “The quarter exceeded our previous indications with better than anticipated results in our US Lower 48, Alaskan and Canadian land drilling units. The solid June results in our Pressure Pumping business suggest a return to expected levels of performance. Our International, US Well-servicing and US Offshore units performed as expected, as did our Other Operating Segments. “The largest sequential improvement came from our US Lower 48 land drilling business where operating income increased by $19.1 million to $99.2 million. This was the result of a 6.3 rig increase in activity and an $807 per day increase in average margins, which included $395 per day in early termination payments. This unit secured another seven term contracts for new rigs during the quarter, bringing the total new build backlog to 36, including eight that are not yet committed to term contracts. We have already deployed eight during the first two quarters and expect to deploy another 13 before the end of the year, with the remaining 23 rigs expected to deploy throughout 2012. The outlook for this segment remains very promising, with significant interest in additional new and upgraded existing rigs continuing.”

Key Stats:

From the first quarter, the company’s current liabilities fell to $1.02 billion from $2.23 billion.

Revenue has risen the past four quarters. Revenue increased 56.3% to $1.41 billion in the first quarter. The figure rose more than twofold in the fourth quarter of the last fiscal year from the year earlier and climbed 36.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 29 cents versus a mean estimate of net income of 34 cents per share.

Competitors to Watch: Patterson-UTI Energy, Inc. (NASDAQ:PTEN), Helmerich & Payne, Inc. (NYSE:HP), Pioneer Drilling Company (AMEX:PDC), Bronco Drilling Co., Inc. (NASDAQ:BRNC), Precision Drilling Corp. (NYSE:PDS), Rowan Companies, Inc. (NYSE:RDC), Unit Corporation (NYSE:UNT), Allis-Chalmers Energy Inc. (NYSE:ALY), and Union Drilling, Inc. (NASDAQ:UDRL).

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(Source: Xignite Financials)