National Oilwell Varco
The 10-second takeaway
For the quarter ended March 31 (Q1), National Oilwell Varco met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share contracted. GAAP earnings per share contracted significantly.
Margins shrank across the board.
National Oilwell Varco tallied revenue of $5.31 billion. The 20 analysts polled by S&P Capital IQ hoped for revenue of $5.37 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $4.30 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 $1.29. The 27 earnings estimates compiled by S&P Capital IQ forecast $1.37 per share. Non-GAAP EPS of $1.29 for Q1 were 10% lower than the prior-year quarter's $1.44 per share. GAAP EPS of $1.17 for Q1 were 18% lower than the prior-year quarter's $1.42 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 24.3%, 510 basis points worse than the prior-year quarter. Operating margin was 15.4%, 500 basis points worse than the prior-year quarter. Net margin was 9.5%, 460 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.58 billion. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $22.83 billion. The average EPS estimate is $5.97.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,960 members out of 4,015 rating the stock outperform, and 55 members rating it underperform. Among 907 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 900 give National Oilwell Varco a green thumbs-up, and seven 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 $85.46.
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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 recommends National Oilwell Varco. The Motley Fool owns 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.