Advertisement
U.S. markets open in 2 hours 53 minutes
  • S&P Futures

    5,205.75
    -9.00 (-0.17%)
     
  • Dow Futures

    39,191.00
    -32.00 (-0.08%)
     
  • Nasdaq Futures

    18,186.25
    -45.25 (-0.25%)
     
  • Russell 2000 Futures

    2,046.80
    -3.00 (-0.15%)
     
  • Crude Oil

    82.45
    -0.27 (-0.33%)
     
  • Gold

    2,157.40
    -6.90 (-0.32%)
     
  • Silver

    25.11
    -0.15 (-0.61%)
     
  • EUR/USD

    1.0847
    -0.0029 (-0.27%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.60
    +0.27 (+1.88%)
     
  • GBP/USD

    1.2681
    -0.0048 (-0.38%)
     
  • USD/JPY

    150.5610
    +1.4630 (+0.98%)
     
  • Bitcoin USD

    63,247.89
    -4,693.96 (-6.91%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,717.52
    -5.03 (-0.07%)
     
  • Nikkei 225

    40,003.60
    +263.20 (+0.66%)
     

National Oilwell Varco (NOV) Reports Q4 Loss

National Oilwell Varco (NOV) came out with a quarterly loss of $0.42 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -250%. A quarter ago, it was expected that this oil and gas industry supplier would post a loss of $0.09 per share when it actually produced a loss of $0.01, delivering a surprise of 88.89%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

National Oilwell Varco, which belongs to the Zacks Technology Services industry, posted revenues of $1.33 billion for the quarter ended December 2020, in line with the Zacks Consensus Estimate. This compares to year-ago revenues of $2.28 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

National Oilwell Varco shares have lost about 0.8% since the beginning of the year versus the S&P 500's gain of 2%.

What's Next for National Oilwell Varco?

While National Oilwell Varco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for National Oilwell Varco was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.12 on $1.34 billion in revenues for the coming quarter and -$0.28 on $5.64 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NOV Inc. (NOV) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Advertisement