National Oilwell Varco Beats on Both Top and Bottom Lines

National Oilwell Varco (NYSE: NOV  ) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), National Oilwell Varco beat expectations on revenues and beat expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
National Oilwell Varco reported revenue of $5.69 billion. The 18 analysts polled by S&P Capital IQ predicted a top line of $5.30 billion on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $4.26 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 $1.49. The 26 earnings estimates compiled by S&P Capital IQ averaged $1.44 per share. GAAP EPS of $1.56 for Q4 were 16% higher than the prior-year quarter's $1.35 per share.

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 24.8%, 510 basis points worse than the prior-year quarter. Operating margin was 15.9%, 400 basis points worse than the prior-year quarter. Net margin was 11.8%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.42 billion. On the bottom line, the average EPS estimate is $1.49.

Next year's average estimate for revenue is $22.67 billion. The average EPS estimate is $6.45.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,756 members out of 3,806 rating the stock outperform, and 50 members rating it underperform. Among 943 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 934 give National Oilwell Varco a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on National Oilwell Varco is outperform, with an average price target of $92.08.

Is National Oilwell Varco 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.

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 recommends National Oilwell Varco. 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.


Read/Post Comments (0) | Recommend This Article (7)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2230995, ~/Articles/ArticleHandler.aspx, 4/20/2014 3:51:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement