National Oilwell Varco Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

National Oilwell Varco (NYS: NOV) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), National Oilwell Varco met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.


Margins dropped across the board.

Revenue details
 National Oilwell Varco booked revenue of $5.32 billion. The 20 analysts polled by S&P Capital IQ looked for revenue of $5.32 billion on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $3.74 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 $1.52. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.51 per share. GAAP EPS of $1.43 for Q3 were 14% higher than the prior-year quarter's $1.25 per share.

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 26.5%, 460 basis points worse than the prior-year quarter. Operating margin was 16.7%, 390 basis points worse than the prior-year quarter. Net margin was 11.5%, 270 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $5.49 billion. On the bottom line, the average EPS estimate is $1.57.

Next year's average estimate for revenue is $19.86 billion. The average EPS estimate is $5.96.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,547 members out of 3,598 rating the stock outperform, and 51 members rating it underperform. Among 833 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 823 give National Oilwell Varco a green thumbs-up, and 10 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 $96.17.

Is National Oilwell Varco 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.

The article National Oilwell Varco Hits Estimates in Solid Quarter originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement