Nabors Industries Ltd. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Nabors Industries Ltd. (NYSE:NBR) will unveil its latest earnings on Tuesday, July 26, 2011. Nabors Industries Ltd. conducts oil, gas and geothermal land drilling operations in the Americas, Caribbean, Middle East, Far East, Russia and Africa.

Nabors Industries Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 25 cents per share, a rise of 31.6% 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 34 cents. Between one and three months ago, the average estimate moved down and dropped from 30 cents during the last month. For the year, analysts are projecting net income of $1.51 per share, a rise of 46.6% 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 29 cents per share versus a mean estimate of net income of 34 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 7 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.33 billion in revenue this quarter, a rise of 44.9% from the year ago quarter. Analysts are forecasting total revenue of $5.84 billion for the year, a rise of 38.4% from last year’s revenue of $4.22 billion.

Analyst Ratings: 14 out of 25 analysts surveyed (56%) have a buy rating on Nabors.. This is below the mean analyst rating of 10 competitors, which average 67.2% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 56.3% to $1.41 billion in first quarter. The figure rose more than twofold in the fourth quarter of the last fiscal year from the year earlier, climbed 36.4% in the third quarter of the last fiscal year from the year-ago quarter and 5.8% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had fallen $4.86 (-15.3%) from $31.68 to $26.82. The stock price saw one of its best stretches over the last year between June 27, 2011 and July 1, 2011 when shares rose for five-straight days, rising 9% (+$2.06) over that span. It saw one of its worst periods between August 18, 2010 and August 26, 2010 when shares fell for seven-straight days, falling 10.5% (-$1.84) over that span. Shares are up $3.36 (+14.3%) year to date.

(Source: Xignite Financials)

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