National Oilwell Varco, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component National Oilwell Varco, Inc. (NYSE:NOV) will unveil its latest earnings on Tuesday, July 26, 2011. National Oilwell Varco, Inc. provides equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services.

National Oilwell Varco, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.01 per share, a rise of 4.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1. Between one and three months ago, the average estimate was unchanged, but has risen during the last month. For the year, analysts are projecting net income of $4.19 per share, a rise of 2.4% 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 $1 per share versus a mean estimate of net income of $1.01 per share. In fourth quarter of the last fiscal year, the company beat estimates by 9 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.23 billion in revenue this quarter, a rise of 9.9% from the year ago quarter. Analysts are forecasting total revenue of $13.38 billion for the year, a rise of 10% from last year’s revenue of $12.16 billion.

Analyst Ratings: Analysts are bullish on this stock with 18 analysts rating it as a buy, none rating it as a sell and three rating it as a hold.

Key Stats:

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 3.6% in the first quarter from the year earlier, while the figure rose 11.7% in the fourth quarter of the last fiscal year, 4.9% in the third quarter of the last fiscal year and 82.3% in the second quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In first quarter, revenue increased 3.8% to $3.15 billion from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 1.2%.

Competitors to Watch:  Baker Hughes Incorporated (NYSE:BHI), Tesco Corporation (NASDAQ:TESO), Cameron Intl. Corp. (NYSE:CAM), T-3 Energy Services, Inc. (NASDAQ:TTES), Oil States Intl., Inc. (NYSE:OIS), Flotek Industries, Inc. (NYSE:FTK), FMC Technologies, Inc. (NYSE:FTI), Lufkin Industries, Inc. (NASDAQ:LUFK), and Schlumberger Limited. (NYSE:SLB).

Stock Price Performance: During May 23, 2011 to July 20, 2011, the stock price had risen $12.27 (18.4%) from $66.67 to $78.94. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 15.5% (+$10.85) over that span. It saw one of its worst periods between April 28, 2011 and May 6, 2011 when shares fell for seven-straight days, falling 10.9% (-$8.37) over that span. Shares are up $11.89 (+17.7%) year to date.

(Source: Xignite Financials)

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