Driller and Services Firm Beat the Street (NOV, DO)

Two oilfield services players reported earnings this morning. National Oilwell Varco, Inc. (NYSE:NOV) and Diamond Offshore Drilling Inc. (NYSE:DO) both beat expectations, but only Diamond is getting a boost this morning.

National reported EPS of $1.13 and revenue of $3.48 billion, compared with the average analysts’ EPS estimate of $1.06 on revenue of $3.29 billion. The company’s backlog on equipment orders fell from $11.1 billion at the end of the 2008 fourth quarter, to $9.6 billion at the end of the first quarter of 2009. That and the company’s statement that “market conditions remain very challenging, and the timing of a recovery is uncertain” are probably the 1-2 punch pushing the shares down about 5% in early trading.

Diamond also beat analysts’ estimates for the quarter, reporting EPS of $2.51 on revenues of $885.7 million for the first quarter of 2009. Expectations averaged EPS of $2.22 and revenues of $878.5 million. Diamond also declared a special cash dividend of $1.875/share this morning, in addition to its regular dividend of $0.125/share. The company included no specific information with its earnings release. Diamond’s shares are trading up more than 6% this morning, at $75.52. The stock’s 52-week range is $53.30- $147.77.

Paul Ausick
April 23, 2009