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National Oilwell (NOV) Posts Q4 Loss as Estimated, Sales Top
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National Oilwell Varco, Inc. (NOV - Free Report) reported fourth-quarter 2017 adjusted loss of 4 cents per share, in line with the Zacks Consensus Estimate.The figure compared favorably with the prior-year quarter loss of 15 cents. Further, the loss per share narrowed 42.9% sequentially.
Total revenues of $1,969 million surpassed the Zacks Consensus Estimate of $1,936 million. Revenues were up 16.4% from the prior-year quarter of $1,692 million. The top line also improved 7.3% sequentially.
National Oilwell Varco, Inc. Price, Consensus and EPS Surprise
During the quarter, National Oilwell reconstituted its offshore-focused business segments by combining Rig Systems and Rig Aftermarkets into a single unit named Rig Technologies. The strategic move is aimed at reducing the administration burden of the company, aligning it better with the evolving market conditions.
Rig Technologies: Revenues came in at $614 million compared with $613 million in the year-ago quarter. Revenues from the segment was up 20.4% sequentially. Sequential rise is attributed to the shipments to customers that deferred deliveries in the prior quarter along with improvement in service and increased order intake.
The unit’s adjusted EBITDA was $70 million, slightly lower than the $71 million recorded in the year-ago quarter. However the segment’s EBITDA jumped 75% sequentially. Higher volumes and cost-cut efforts improved profits.
Wellbore Technologies: The segment’s revenues surged 34.7% year over year to $715 million. The revenue also witnessed an increase from the $693 million recorded in the prior quarter. Robust demand stemming from greater market adoption of the unit’s superior technology services drove revenues.
Importantly, the unit improved significantly from last year’s adjusted EBITDA of $20 million to clock $107 million this time. The figure also managed to edge past the prior-quarter’s EBITDA of $94 million. Higher volumes and pricing gains led to sharp increase in EBITDA.
Completion & Production Solutions: Revenues for the segment were $690 million, up 14.6% from $602 million in the year-ago quarter. The top line of the segment was also ahead of the $682 million recorded in the prior quarter. Solid revenues were driven by rising deliveries of pressure pumping equipment and composite pipe.
The unit recorded adjusted EBITDA of $74 million, up from $69 million in the corresponding period last year but declined from the last quarter’s EBITDA of $97 million. Lower sequential profits were attributed to increased segmental costs and lower revenues from offshore products.
Backlog
Capital equipment orders’ backlog for Rig Systems was $1,890 million as of Dec 31, including $169 million in new orders during the fourth quarter.
Moreover, Completion & Production Solutions segment reported a backlog of $1,070 million in capital equipment order as at the end of the fourth quarter. The figure included $501 million in new orders.
Balance Sheet
As of Dec 31, 2017, the company had cash and cash equivalents of $1,437 million and long-term debt of $2,706 million. The debt-to-capitalization ratio was approximately 16%.
Devon Energy delivered positive earnings surprise in each of the last four quarters, with an average beat of 13.77%.
Concho Resources delivered positive earnings surprise in each of the last four quarters, with an average beat of 118.57%.
Cabot’s 2018 earnings are expected to increase of 128.37% year over year.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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National Oilwell (NOV) Posts Q4 Loss as Estimated, Sales Top
National Oilwell Varco, Inc. (NOV - Free Report) reported fourth-quarter 2017 adjusted loss of 4 cents per share, in line with the Zacks Consensus Estimate.The figure compared favorably with the prior-year quarter loss of 15 cents. Further, the loss per share narrowed 42.9% sequentially.
Total revenues of $1,969 million surpassed the Zacks Consensus Estimate of $1,936 million. Revenues were up 16.4% from the prior-year quarter of $1,692 million. The top line also improved 7.3% sequentially.
National Oilwell Varco, Inc. Price, Consensus and EPS Surprise
National Oilwell Varco, Inc. Price, Consensus and EPS Surprise | National Oilwell Varco, Inc. Quote
Segmental Performance
During the quarter, National Oilwell reconstituted its offshore-focused business segments by combining Rig Systems and Rig Aftermarkets into a single unit named Rig Technologies. The strategic move is aimed at reducing the administration burden of the company, aligning it better with the evolving market conditions.
Rig Technologies: Revenues came in at $614 million compared with $613 million in the year-ago quarter. Revenues from the segment was up 20.4% sequentially. Sequential rise is attributed to the shipments to customers that deferred deliveries in the prior quarter along with improvement in service and increased order intake.
The unit’s adjusted EBITDA was $70 million, slightly lower than the $71 million recorded in the year-ago quarter. However the segment’s EBITDA jumped 75% sequentially. Higher volumes and cost-cut efforts improved profits.
Wellbore Technologies: The segment’s revenues surged 34.7% year over year to $715 million. The revenue also witnessed an increase from the $693 million recorded in the prior quarter. Robust demand stemming from greater market adoption of the unit’s superior technology services drove revenues.
Importantly, the unit improved significantly from last year’s adjusted EBITDA of $20 million to clock $107 million this time. The figure also managed to edge past the prior-quarter’s EBITDA of $94 million. Higher volumes and pricing gains led to sharp increase in EBITDA.
Completion & Production Solutions: Revenues for the segment were $690 million, up 14.6% from $602 million in the year-ago quarter. The top line of the segment was also ahead of the $682 million recorded in the prior quarter. Solid revenues were driven by rising deliveries of pressure pumping equipment and composite pipe.
The unit recorded adjusted EBITDA of $74 million, up from $69 million in the corresponding period last year but declined from the last quarter’s EBITDA of $97 million. Lower sequential profits were attributed to increased segmental costs and lower revenues from offshore products.
Backlog
Capital equipment orders’ backlog for Rig Systems was $1,890 million as of Dec 31, including $169 million in new orders during the fourth quarter.
Moreover, Completion & Production Solutions segment reported a backlog of $1,070 million in capital equipment order as at the end of the fourth quarter. The figure included $501 million in new orders.
Balance Sheet
As of Dec 31, 2017, the company had cash and cash equivalents of $1,437 million and long-term debt of $2,706 million. The debt-to-capitalization ratio was approximately 16%.
Zacks Rank & Key Picks
National Oilwell carries a Zacks Rank #4 (Sell).
Some better-ranked energy players are Devon Energy (DVN - Free Report) , Concho Resources and Cabot . All three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Devon Energy delivered positive earnings surprise in each of the last four quarters, with an average beat of 13.77%.
Concho Resources delivered positive earnings surprise in each of the last four quarters, with an average beat of 118.57%.
Cabot’s 2018 earnings are expected to increase of 128.37% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>