National Oilwell Varco, Inc. (NYSE:NOV) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.8%.
National Oilwell Varco, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 10.42% to $1.29 in the quarter versus EPS of $1.44 in the year-earlier quarter.
Revenue: Rose 23.33% to $5.31 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: National Oilwell Varco, Inc. reported adjusted EPS income of $1.29 per share. By that measure, the company missed the mean analyst estimate of $1.36. It missed the average revenue estimate of $5.38 billion.
Quoting Management: Pete Miller, Chairman and CEO of National Oilwell Varco, remarked, “The North American market was softer than anticipated; however, our strong backlog for drilling equipment, coupled with the recent investments that we have made in acquisitions, international expansion and incremental capacity, enabled our Company to generate solid earnings in the first quarter. As we move through the year, we expect to see continued improvements in international activity, strong industry demand for both floaters and jackups, and a heightened level of interest and orders in our floating production equipment offering.” Miller continued, “Additionally, while we are cautious regarding the timing of a North America recovery, we remain confident that land drillers and well service firms will soon consume their current inventories, ultimately requiring more of our products and services. Until that time, we take comfort in knowing that we are well positioned for this market, given our strong financial resources, unparalleled market presence, exceptional backlog, and extraordinary workforce.”
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