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Nabors Industries to Report Q3 Earnings: What's in the Offing?
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Nabors Industries Ltd. (NBR - Free Report) is set to report third-quarter earnings on Oct. 22, after the closing bell. The Zacks Consensus Estimate for the top and the bottom lines is pegged at $748.15 million and at a loss of $1.73, respectively.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Let us delve into the factors that might have influenced NBR’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q2 Earnings
In the last reported quarter, the Hamilton-based oil and gas drilling service company’s loss per share was wider than the consensus mark. NBR reported a loss per share of $4.29, wider than the Zacks Consensus Estimate of a loss of $1.77. This was primarily due to poor contributions from NBR’s U.S. Drilling and Rig Technologies segments and higher year-over-year total costs and expenses. Operating revenues of $734.8 million missed the Zacks Consensus Estimate by 0.8%.
NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 755.52%.
The Zacks Consensus Estimate for third-quarter 2024 loss per share of $1.73 has not witnessed any movement in the past seven days. The estimated figure indicates a 67.96% year-over-year bottom-line increase. The Zacks Consensus Estimate for revenues indicates an improvement of 0.54% from the year-ago period’s level.
Factors to Consider
NBR’s revenues are likely to have improved in the quarter to be reported. The company makes money by providing essential services to the oil and gas industry and its revenues are primarily driven by the demand for these services, which is influenced by various factors such as oil and gas prices, exploration and production activity, competition and economic conditions. Our model predicts third-quarter revenues to increase to $749 million from the last reported quarter’s $743 million. This increase has been driven by higher contributions from NBR’s U.S. Drilling segment.
We expect Nabors to have benefited from its high-quality fleet of drilling rigs, including advanced technology rigs that might have enhanced operational efficiency in the quarter to be reported. The company's focus on maintaining a modern and capable fleet positions it favorably against competitors, which is expected to have provided better pricing power even in challenging market conditions.
On the cost side, rising NBR’s depreciation and amortization is expected to have hurt its bottom-line performance. We expect the company’s depreciation and amortization to have reached $174.7 million in the third quarter, up 8.4% from the previous reported quarter’s $160.1 million.
What Does Our Model Predict?
Our proven Zacks model does not conclusively predict 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 is 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 0.00%. 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 #4 (Sell).
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
The firm is scheduled to release earnings on Oct. 31. LNG’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, delivering an average surprise of 55.86%. Valued at around $41.59 billion, LNG has gained 5% in a year.
Targa Resources Corp. (TRGP - Free Report) has an Earnings ESP of +8.82% and a Zacks Rank #2 at present. The firm is scheduled to release earnings on Nov. 5.
Valued at around $35.46 billion, TRGP, together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires and develops a portfolio of complementary domestic midstream infrastructure assets in North America.
CNX Resources Corporation (CNX - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Oct. 24.
CNX is an independent oil and gas exploration and production company formed after the separation of CONSOL’s Exploration and Production and Pennsylvania Mining Operations into two independent companies.
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Nabors Industries to Report Q3 Earnings: What's in the Offing?
Nabors Industries Ltd. (NBR - Free Report) is set to report third-quarter earnings on Oct. 22, after the closing bell. The Zacks Consensus Estimate for the top and the bottom lines is pegged at $748.15 million and at a loss of $1.73, respectively.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Let us delve into the factors that might have influenced NBR’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q2 Earnings
In the last reported quarter, the Hamilton-based oil and gas drilling service company’s loss per share was wider than the consensus mark. NBR reported a loss per share of $4.29, wider than the Zacks Consensus Estimate of a loss of $1.77. This was primarily due to poor contributions from NBR’s U.S. Drilling and Rig Technologies segments and higher year-over-year total costs and expenses. Operating revenues of $734.8 million missed the Zacks Consensus Estimate by 0.8%.
NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 755.52%.
This is depicted in the graph below:
Nabors Industries Ltd. Price and EPS Surprise
Nabors Industries Ltd. price-eps-surprise | Nabors Industries Ltd. Quote
Trend in Estimate Revision for NBR Stock
The Zacks Consensus Estimate for third-quarter 2024 loss per share of $1.73 has not witnessed any movement in the past seven days. The estimated figure indicates a 67.96% year-over-year bottom-line increase. The Zacks Consensus Estimate for revenues indicates an improvement of 0.54% from the year-ago period’s level.
Factors to Consider
NBR’s revenues are likely to have improved in the quarter to be reported. The company makes money by providing essential services to the oil and gas industry and its revenues are primarily driven by the demand for these services, which is influenced by various factors such as oil and gas prices, exploration and production activity, competition and economic conditions. Our model predicts third-quarter revenues to increase to $749 million from the last reported quarter’s $743 million. This increase has been driven by higher contributions from NBR’s U.S. Drilling segment.
We expect Nabors to have benefited from its high-quality fleet of drilling rigs, including advanced technology rigs that might have enhanced operational efficiency in the quarter to be reported. The company's focus on maintaining a modern and capable fleet positions it favorably against competitors, which is expected to have provided better pricing power even in challenging market conditions.
On the cost side, rising NBR’s depreciation and amortization is expected to have hurt its bottom-line performance. We expect the company’s depreciation and amortization to have reached $174.7 million in the third quarter, up 8.4% from the previous reported quarter’s $160.1 million.
What Does Our Model Predict?
Our proven Zacks model does not conclusively predict 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 is 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 0.00%. 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 #4 (Sell).
Stocks to Consider
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Cheniere Energy, Inc. (LNG - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The firm is scheduled to release earnings on Oct. 31. LNG’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, delivering an average surprise of 55.86%. Valued at around $41.59 billion, LNG has gained 5% in a year.
Targa Resources Corp. (TRGP - Free Report) has an Earnings ESP of +8.82% and a Zacks Rank #2 at present. The firm is scheduled to release earnings on Nov. 5.
Valued at around $35.46 billion, TRGP, together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires and develops a portfolio of complementary domestic midstream infrastructure assets in North America.
CNX Resources Corporation (CNX - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Oct. 24.
CNX is an independent oil and gas exploration and production company formed after the separation of CONSOL’s Exploration and Production and Pennsylvania Mining Operations into two independent companies.