The 10-second takeaway
For the quarter ended March 31 (Q1), Nabors Industries missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins contracted, net margins shrank.
Nabors Industries booked revenue of $1.58 billion. The 17 analysts polled by S&P Capital IQ predicted sales of $1.63 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $1.89 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. GAAP EPS of $0.34 for Q1 were 26% lower than the prior-year quarter's $0.46 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.2%, 90 basis points better than the prior-year quarter. Operating margin was 13.8%, 320 basis points worse than the prior-year quarter. Net margin was 6.0%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $6.55 billion. The average EPS estimate is $1.14.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nabors Industries is outperform, with an average price target of $18.42.
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