National Oilwell Varco Inc. Earnings: Profit Rises Behind Revenue Boost

S&P 500 (NYSE:SPY) component National Oilwell Varco Inc. (NYSE:NOV) reported higher profit for the fourth 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.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

National Oilwell Varco Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for National Oilwell Varco Inc. rose to $574 million ($1.35 per share) vs. $440 million ($1.05 per share) in the same quarter a year earlier. This marks a rise of 30.5% from the year earlier quarter.

Revenue: Rose 34.3% to $4.26 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: National Oilwell Varco Inc. beat the mean analyst estimate of $1.30 per share. It beat the average revenue estimate of $4.03 billion.

Quoting Management: Pete Miller, Chairman, President and CEO of National Oilwell Varco, remarked, “We achieved solid results in 2011. The Company posted record revenues, net income, and orders for capital equipment, which at $10.8 billion for the year handily beat our previous high of $7.3 billion. We used the year to focus on efficiency and technology, while continuing to invest for future growth, to position National Oilwell Varco to capitalize on extraordinary opportunities emerging in the oil and gas industry.”

Key Stats:
The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 31.7% and in the second quarter, the figure rose 20%.

Revenue has risen the past four quarters. Revenue increased 24.2% to $3.74 billion in the third quarter. The figure rose 19.4% in the second quarter from the year earlier and climbed 3.8% in the first quarter from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 9 cents in the third quarter and by 13 cents in the second quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from $1.37 per share to $1.36. At $4.69 per share, the average estimate for the fiscal year has risen from $4.68 sixty days ago.

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

Don’t Miss These Additional Hot Earnings Stories:

Chipotle Mexican Grill Inc. Earnings: Double-Digit Growth Again

Las Vegas Sands Corp. Earnings: Revenue Strengthens for Fifth Straight Quarter by Double-Digits

Green Mountain Coffee Roasters Inc. Earnings: Beats Analysts’ Estimates

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