National Oilwell Varco Earnings: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component National Oilwell Varco Inc. (NYSE:NOV) reported higher profit for the third quarter as revenue showed growth. National Oilwell Varco provides equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services.

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National Oilwell Varco Inc. Earnings Cheat Sheet

Results: Net income for National Oilwell Varco Inc. rose to $612 million ($1.43 per share) vs. $532 million ($1.25 per share) in the same quarter a year earlier. This marks a rise of 15% from the year-earlier quarter.

Revenue: Rose 42.2% to $5.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: National Oilwell Varco Inc. fell short of the mean analyst estimate of $1.51 per share. It beat the average revenue estimate of $4.44 billion.

Quoting Management: Pete Miller, Chairman, President and CEO of National Oilwell Varco, remarked, “Outstanding execution enabled the Company to achieve solid earnings again this quarter. We are pleased by the level of bookings into our capital equipment backlog for the Rig Technology segment during the third quarter. We continue to see steady activity around new orders, and expect high demand for deepwater rigs to drive solid orders again in the fourth quarter. Demand for other NOV products and services continued to grow in international markets, but softening demand in North America partly offset this trend during the third quarter.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 34.4%, with the biggest boost coming in the most recent quarter when revenue rose 42.2% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 25.8% and in the first quarter, the figure rose 48.9%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 6 cents, and in the first quarter, it was ahead by 5 cents.

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 $1.59 a share to $1.57 over the last ninety days. For the fiscal year, the average estimate has moved up from $5.95 a share to $5.98 over the last ninety days.

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

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