National Oilwell Varco
The 10-second takeaway
For the quarter ended June 30 (Q2), National Oilwell Varco beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share shrank. GAAP earnings per share dropped.
Margins shrank across the board.
National Oilwell Varco reported revenue of $5.60 billion. The 19 analysts polled by S&P Capital IQ wanted to see sales of $5.42 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $4.73 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 $1.33. The 28 earnings estimates compiled by S&P Capital IQ predicted $1.33 per share. Non-GAAP EPS of $1.33 for Q2 were 8.9% lower than the prior-year quarter's $1.46 per share. GAAP EPS of $1.24 for Q2 were 13% 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 23.6%, 400 basis points worse than the prior-year quarter. Operating margin was 13.7%, 490 basis points worse than the prior-year quarter. Net margin was 9.5%, 330 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.63 billion. On the bottom line, the average EPS estimate is $1.42.
Next year's average estimate for revenue is $22.23 billion. The average EPS estimate is $5.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,072 members out of 4,129 rating the stock outperform, and 57 members rating it underperform. Among 966 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 959 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 $81.54.
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