National Oilwell Varco Beats on Demand for Drilling Rigs

Energy

Published: July 26, 2012 8:47 am

National Oilwell Varco Inc. (NYSE: NOV) reported second-quarter adjusted earnings per share (EPS) of $1.46 and $4.7 billion in revenue this morning. Adjusted EPS rose 26% from $1.14 in the same period a year ago, and revenue was also up nicely from $3.5 billion a year ago. The results compare to the Thomson Reuters consensus estimates for EPS of $1.41 and $4.44 billion in revenue.

The oil field services company did not offer any guidance in today’s press release. The company did say that its order backlog in the rig technology segment totals $11.28 billion, up 9% year-over-year and 46% sequentially. The consensus estimate for third-quarter EPS is $1.51 and the full-year estimated EPS is $5.93.

The company’s chairman and CEO noted:

Most markets we serve have remained buoyant, despite lower commodity prices, and we therefore expect solid results for the second half of the year.

Other oil field services firms like Baker Hughes Inc. (NYSE: BHI), Schlumberger Ltd. (NYSE: SLB), and Halliburton Co. (NYSE: HAL) have already posted strong second-quarter earnings. National Oilwell Varco’s EPS estimate had been cut by $0.03 in the 90-day period leading up to today’s report, so the fact that it beat even the higher figure is a good sign for the company going into the second half of the year.

Shares are up 2.6% in premarket trading at $69.05 in a 52-week range of $47.97 to $87.72. Thomson Reuters had a consensus analyst price target of $93.18 before today’s results were announced.

Paul Ausick

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