National Oilwell Varco
The 10-second takeaway
For the quarter ended March 31 (Q1), National Oilwell Varco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins improved, and net margins increased.
National Oilwell Varco tallied revenue of $4.30 billion. The 16 analysts polled by S&P Capital IQ wanted to see revenue of $4.30 billion on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $3.15 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 $1.44. The 23 earnings estimates compiled by S&P Capital IQ anticipated $1.39 per share on the same basis. GAAP EPS of $1.42 for Q1 were 48% higher than the prior-year quarter's $0.96 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 29.5%, 150 basis points worse than the prior-year quarter. Operating margin was 20.5%, 110 basis points better than the prior-year quarter. Net margin was 14.1%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.39 billion. On the bottom line, the average EPS estimate is $1.44.
Next year's average estimate for revenue is $18.01 billion. The average EPS estimate is $6.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,403 members out of 3,454 rating the stock outperform, and 51 members rating it underperform. Among 868 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 860 give National Oilwell Varco a green thumbs-up, and eight 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 $94.31.
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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. The Motley Fool owns shares of National Oilwell Varco. Motley Fool newsletter services have recommended buying shares of 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.