NOV Inc. (NOV Quick QuoteNOV - Free Report) is set to release second-quarter results on Jul 25, 2024. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share on revenues of $2.17 billion.

Let’s delve into the factors that might have influenced the oilfield service provider’s performance in the June quarter. But first, it’s worth taking a look at NOV’s performance in the last reported quarter.

Highlights of Q1 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oil and gas equipment company beat the consensus mark on improving Energy Products and Services and Energy Equipment segments. NOV reported adjusted earnings per share of 30 cents, surpassing the Zacks Consensus Estimate of 27 cents. Revenues of $2.16 billion was up 2.6% from the consensus mark. NOV beat the Zacks Consensus Estimate for earnings thrice in the last reported four quarters while missing once. The earnings surprise was 13.92%, on average.

This is depicted in the graph below:

Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter fiscal 2024 earnings has witnessed no upward and downward movement in the past 30 days. The estimated figure indicates a 10.26% year-over-year decline. However, the Zacks Consensus Estimate for revenues indicates a 3.82% increase from the year-ago period.

Factors to Consider

NOV’s revenues are expected to have improved in the quarter to be reported. Our model predicts second-quarter revenues to increase to $2,167.3 million from the last reported quarter's level of $2,093 million. This can be attributed to the strong performance of the Energy Products and Services and Energy Equipment segment again.

On a somewhat bearish note, the increase in NOV’s costs might have dented the company’s to-be-reported bottom line. The company’s second-quarter cost of goods sold is likely to have totaled $1,685.8 million, up 3% from the year-ago period. The upward cost trajectory is expected to have continued in the second quarter due to the prevailing inflationary environment.

What Does Our Model Predict?

The proven Zacks model does not conclusively predict an earnings beat for NOV 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 beating estimates. However, that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%.

Zacks Rank: NOV currently carries a Zacks Rank #4 (Sell).

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 this reporting cycle.

Coterra Energy (CTRA Quick QuoteCTRA - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on Aug 1. CTRA has a trailing four-quarter average earnings surprise of 0.3%. Valued at around $20.1 billion, CTRA’s shares have risen 2.2% in a year.

Pembina Pipeline (PBA Quick QuotePBA - Free Report) currently has an Earnings ESP of +9.09% and a Zacks Rank #2. The firm is scheduled to release earnings on Aug 8.

PBA has a trailing four-quarter average earnings surprise of 10.91%. Valued at around $21.84 billion, PBA’s shares have risen 20.3% in a year.

Baker Hughes (BKR Quick QuoteBKR - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Jul 25.

BKR has a trailing four-quarter average earnings surprise of 11.4%.  Valued at around $36.09 billion, BKR’s shares have risen 1.4% in a year.