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Why Is Nabors (NBR) Down 16.2% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Nabors Industries Ltd. (NBR - Free Report) . Shares have lost about 16.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2016 Results
Nabors Industries reported fourth-quarter 2016 adjusted loss from continuing operations of 30 cents per share, narrower than the Zacks Consensus Estimate of a loss of 32 cents. The quarterly figure was wider than the year-ago adjusted loss of 22 cents per share.
Total revenue of $539 million came in line with the Zacks Consensus Estimate but decreased from $694 million in fourth-quarter 2015.
Nabors’ U.S. operations generated quarterly revenues of $148.9 million, down 33% from the year-ago level. The deterioration stemmed from an operating loss of $42.9 million as against a loss of $7.4 million in the prior-year period.
The Canadian market witnessed a year-over-year decline of 40.3% in revenues and recorded sales of $16.9 million. Moreover, the segment’s quarterly loss of $8.6 million was substantially wider than an operating loss of $1 million in the year-ago quarter. Lower rig activity was the primary reason behind the deterioration.
Nabors’ international operations registered a 23.5% year-over-year decline in revenues to $343.3 million. Operating income plunged 60.7% from fourth-quarter 2015 to $20.4 million.
Revenues at the Rig Services segment decreased 12.6% from the prior-year quarter to $63.7 million. The unit incurred loss of $5.2 million, narrower than a loss of $13.5 million in the year-earlier quarter.
Direct Cost
Direct expenses related to operations came in at $331.6 million, down 25.5% from the year-ago quarter.
Balance Sheet
As of Dec 31, 2016, the company had $295.2 million in cash and short-term investments and $3,578.3 million in long-term debt, with a debt-to-capitalization ratio of approximately 52.4%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There have been three downward revisions for the current quarter. In the past month, the consensus estimate also shifted downward by 5.4% due to these changes.
At this time, Nabors' stock has a subpar Growth Score of 'D', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable soley for value based on our styles scores.
Outlook
Etimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Nabors (NBR) Down 16.2% Since the Last Earnings Report?
A month has gone by since the last earnings report for Nabors Industries Ltd. (NBR - Free Report) . Shares have lost about 16.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2016 Results
Nabors Industries reported fourth-quarter 2016 adjusted loss from continuing operations of 30 cents per share, narrower than the Zacks Consensus Estimate of a loss of 32 cents. The quarterly figure was wider than the year-ago adjusted loss of 22 cents per share.
Total revenue of $539 million came in line with the Zacks Consensus Estimate but decreased from $694 million in fourth-quarter 2015.
Nabors’ U.S. operations generated quarterly revenues of $148.9 million, down 33% from the year-ago level. The deterioration stemmed from an operating loss of $42.9 million as against a loss of $7.4 million in the prior-year period.
The Canadian market witnessed a year-over-year decline of 40.3% in revenues and recorded sales of $16.9 million. Moreover, the segment’s quarterly loss of $8.6 million was substantially wider than an operating loss of $1 million in the year-ago quarter. Lower rig activity was the primary reason behind the deterioration.
Nabors’ international operations registered a 23.5% year-over-year decline in revenues to $343.3 million. Operating income plunged 60.7% from fourth-quarter 2015 to $20.4 million.
Revenues at the Rig Services segment decreased 12.6% from the prior-year quarter to $63.7 million. The unit incurred loss of $5.2 million, narrower than a loss of $13.5 million in the year-earlier quarter.
Direct Cost
Direct expenses related to operations came in at $331.6 million, down 25.5% from the year-ago quarter.
Balance Sheet
As of Dec 31, 2016, the company had $295.2 million in cash and short-term investments and $3,578.3 million in long-term debt, with a debt-to-capitalization ratio of approximately 52.4%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There have been three downward revisions for the current quarter. In the past month, the consensus estimate also shifted downward by 5.4% due to these changes.
Nabors Industries Ltd. Price and Consensus
Nabors Industries Ltd. Price and Consensus | Nabors Industries Ltd. Quote
VGM Scores
At this time, Nabors' stock has a subpar Growth Score of 'D', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable soley for value based on our styles scores.
Outlook
Etimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.