National Oilwell Varco Earnings: Here’s Why the Stock is Down Now

National Oilwell Varco, Inc. (NYSE:NOV) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.18%.

National Oilwell Varco, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.9% to $1.33 in the quarter versus EPS of $1.46 in the year-earlier quarter.

Revenue: Rose 18.31% to $5.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: National Oilwell Varco, Inc. reported adjusted EPS income of $1.33 per share. By that measure, the company met the mean analyst estimate of $1.33. It beat the average revenue estimate of $5.42 billion.

Quoting Management: Pete Miller, Chairman and CEO of National Oilwell Varco, remarked, “The second quarter of 2013 marked another solid quarter for NOV. Despite seasonal slowdowns in Canada and a challenging US market, the Company produced sequential gains in revenues and earnings, which were largely driven by strong revenues out of backlog and significant international growth within our Petroleum Services & Supplies and Distribution & Transmission segments. The Company also ended the quarter with an all-time record backlog of capital equipment, as orders for new floaters and jackups continued at a strong pace, and orders for our floating production equipment more than doubled from the first quarter.” Miller continued, “In addition to our solid operating results, we are also proud to have doubled our regular dividend in the second quarter, further demonstrating our commitment to return more cash to our shareholders. As we move through the second half of 2013, we look forward to continued demand for our offshore drilling and floating production equipment, a gradual rebound in Canada, and continued growth from our other international operations.”

Key Stats (on next page)…

Revenue increased 5.54% from $5.31 billion in the previous quarter. EPS increased 3.1% from $1.29 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.44 to a profit $1.43. For the current year, the average estimate has moved down from a profit of $5.68 to a profit of $5.57 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)