Please ensure Javascript is enabled for purposes of website accessibility

Nabors Industries Beats Estimates But Has a Big Earnings Drop

By Seth Jayson – Updated Apr 10, 2017 at 1:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

Nabors Industries (NYSE: NBR) reported earnings on April 23. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

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 $18.42.

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.

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 position in any of the stocks mentioned. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nabors Industries Ltd. Stock Quote
Nabors Industries Ltd.
NBR
$101.45 (-1.14%) $-1.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.