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Nabors (NBR) to Report Q2 Earnings: What's in the Cards?
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Nabors Industries Ltd. (NBR - Free Report) is set to report second-quarter earnings on Jul 23, after the closing bell. The Zacks Consensus Estimate for the top and the bottom line is pegged at $741.4 million and a loss of $1.82 per share, respectively.
Let’s delve into the factors that might have influenced NBR’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q1 Earnings
In the last reported quarter, the Hamilton-based oil and gas drilling service company’s adjusted loss per share was wider than the consensus mark. NBR reported an adjusted loss per share of $5.16, which was $2.92 higher than the Zacks Consensus Estimate for adjusted loss per share. This was primarily due to much higher year-over-year total costs and expenses in the reported quarter. Revenues of $743.9 million beat the Zacks Consensus Estimate by 18.8%.
NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative earnings surprise of 782.60%.
The Zacks Consensus Estimate for second-quarter 2024 earnings has witnessed no movement in the past 30 days. The estimated figure indicates a 19.47% year-over-year bottom-line increase. The Zacks Consensus Estimate for revenues indicates a deterioration of 4.79% from the year-ago period.
Factors to Consider
NBR’s revenues are likely to have hurt in the quarter to be reported. Our model predicts second-quarter revenues to decrease to $738.6 million from the last reported quarter’s $743.9 million. This decline is due to higher contributions from NBR’s U.S. Drilling, International Drilling and Drilling Solutions segments.
On a positive note, the reduction in NBR's costs is expected to improve its bottom-line performance. The company’s operating expenses are projected to have reached $725.9 million in the second quarter, which is 1.5% down from last reported quarter’s $736.9 million. Its cost of services is expected to have decreased from $437.1 million to $423.8 million in the same time frame.
What Does Our Model Say?
The proven Zacks model does not conclusively show an earnings beat for Nabors Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -33.43%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: NBR currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat.
Image: Bigstock
Nabors (NBR) to Report Q2 Earnings: What's in the Cards?
Nabors Industries Ltd. (NBR - Free Report) is set to report second-quarter earnings on Jul 23, after the closing bell. The Zacks Consensus Estimate for the top and the bottom line is pegged at $741.4 million and a loss of $1.82 per share, respectively.
Let’s delve into the factors that might have influenced NBR’s performance in the to-be-reported quarter. Before that, it’s worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q1 Earnings
In the last reported quarter, the Hamilton-based oil and gas drilling service company’s adjusted loss per share was wider than the consensus mark. NBR reported an adjusted loss per share of $5.16, which was $2.92 higher than the Zacks Consensus Estimate for adjusted loss per share. This was primarily due to much higher year-over-year total costs and expenses in the reported quarter. Revenues of $743.9 million beat the Zacks Consensus Estimate by 18.8%.
NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative earnings surprise of 782.60%.
Nabors Industries Ltd. Price and EPS Surprise
Nabors Industries Ltd. price-eps-surprise | Nabors Industries Ltd. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter 2024 earnings has witnessed no movement in the past 30 days. The estimated figure indicates a 19.47% year-over-year bottom-line increase. The Zacks Consensus Estimate for revenues indicates a deterioration of 4.79% from the year-ago period.
Factors to Consider
NBR’s revenues are likely to have hurt in the quarter to be reported. Our model predicts second-quarter revenues to decrease to $738.6 million from the last reported quarter’s $743.9 million. This decline is due to higher contributions from NBR’s U.S. Drilling, International Drilling and Drilling Solutions segments.
On a positive note, the reduction in NBR's costs is expected to improve its bottom-line performance. The company’s operating expenses are projected to have reached $725.9 million in the second quarter, which is 1.5% down from last reported quarter’s $736.9 million. Its cost of services is expected to have decreased from $437.1 million to $423.8 million in the same time frame.
What Does Our Model Say?
The proven Zacks model does not conclusively show an earnings beat for Nabors Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -33.43%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: NBR currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat.
TechnipFMC (FTI - Free Report) has an Earnings ESP of +9.21% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
FTI has a trailing four-quarter average earnings surprise of 5.42%. Valued at around $11.49 billion, FTI’s shares have risen 61.3% in a year.
Expro Group Holdings (XPRO - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25.
XPRO has a trailing four-quarter average earnings surprise of 78.41%. Valued at around $2.5 billion, XPRO’s shares have risen 14.7% in a year.
Baker Hughes (BKR - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #2. The firm is scheduled to release earnings on Jul 25.
Baker Hughes is valued at $34.43 billion. BKR has a trailing four-quarter average earnings surprise of 11.40%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.