Nabors Industries Ltd. Earnings: Swinging to a Loss After Two Quarters of Profit

S&P 500 (NYSE:SPY) component Nabors Industries Ltd. (NYSE:NBR) reported its results for the fourth 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 Fourth Quarter

Results: Reported a loss of $105.8 million (36 cents per diluted share) in the quarter. Nabors Industries Ltd. had a net income of $50.5 million or 17 cents per share in the year-earlier quarter.

Revenue: Rose 31.9% to $1.74 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nabors Industries Ltd. reported adjusted net income of 52 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. Analysts were expecting revenue of $1.72 billion.

Quoting Management: Tony Petrello, Nabors’ President and CEO, commented, “The quarter’s results reflect solid operational improvement across all of our North America businesses. The impairments and reserves we incurred in the quarter reflect conservative estimates of realizable value and should serve to minimize future noncash charges that detract from our operating results, other than the potential for further ceiling test charges in our NFR joint venture. “Our results during the quarter reflect increases in all of our operational units except International, which performed as previously indicated. They also include $10 million in net charges taken by two business units: $6 million in NFR, which is the net effect of a ceiling test impairment and an acquisition-related asset gain; and $4 million in Canrig, arising from expensing a research and development asset in a technology company acquired during the quarter. ”

Key Stats:

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $74.3 million in the third quarter, a profit of $192.4 million in the second quarter and $82.8 million in the first.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 44 cents versus a mean estimate of net income of 40 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 55 cents per share to 52 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $1.46 per share, a rise from $1.45 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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