National Oilwell Varco Earnings On Deck (NOV)

On Tuesday morning, we’ll get to see earnings out of National Oilwell Varco, Inc. (NYSE: NOV).  The oil rig and components manufacturer is expected to post $1.13 EPS on $3.2 Billion in revenues. 

Estimates for next quarter are $1.24 EPS on $3.51 Billion in revenues and Fiscal December 2008 at $4.79 EPS on $13.03 Billion in revenues. 

If there is one oil company that knows and understands its earnings projections from Wall Street, it’s NOV.  In case the company goes out on a limb and gives 2009 guidance, those estimates for Fiscal December-2009 are $5.77 EPS on $15.7 Billion in revenues.  If you look at its website the company even lists the consensus estimates out to Fiscal December-2010 (listed as $6.48 EPS). 

Here are some individual metrics to watch:

• Options traders appear to be braced for a move of more than $4.00 in either direction.
• Analysts have average price targets just north of $100.00 per share and the 52-week trading range is $48.91 to $92.70.
• With a $74.11 level and a $30.7 Billion market cap, this one hasactually pulled back sharply from highs with many other oil namesdespite major demand.

One wild card for earnings in this particular company is that the company is still in the process ofgoing through its acquisition integration of Grant Prideco that wascompleted in April.  At its April 30, 2008 earnings date (post merger-close), the companylisted a 10% growth in its backlog to $9.9 Billion in the company’s RigTechnology sector.

Jon C. Ogg
July 28, 2008