The 10-second takeaway
For the quarter ended March 31 (Q1), Nabors Industries beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Gross margin dropped, operating margin expanded, and net margin increased.
Nabors Industries booked revenue of $1.84 billion. The 17 analysts polled by S&P Capital IQ anticipated revenue of $1.80 billion on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $1.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.65. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.50 per share on the same basis. GAAP EPS of $0.46 for Q1 were 64% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.7%, 220 basis points worse than the prior-year quarter. Operating margin was 14.8%, 210 basis points better than the prior-year quarter. Net margin was 7.3%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.77 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $7.43 billion. The average EPS estimate is $2.17.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nabors Industries is outperform, with an average price target of $27.00.
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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. 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.