Nabors Industries Goes Red (NBR)

Nabors Industries Goes Red

Nabors Industries (NYSE: NBR ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Nabors Industries met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.

Gross margins dropped, operating margins grew, net margins shrank.

Revenue details
Nabors Industries logged revenue of $1.74 billion. The 12 analysts polled by S&P Capital IQ predicted revenue of $1.72 billion on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $1.35 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.38. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS were -$0.25 for Q2 versus $0.65 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.3%, 310 basis points worse than the prior-year quarter. Operating margin was 12.6%, 40 basis points better than the prior-year quarter. Net margin was -4.2%, 1,840 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.79 billion. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $7.23 billion. The average EPS estimate is $1.92.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nabors Industries is outperform, with an average price target of $24.05.

Is Nabors Industries the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

Add Nabors Industries to My Watchlist.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.