The Gory Details on Nabors Industries's Double Fumble

Seth Jayson, The Motley Fool
Updated

Nabors Industries (NYS: NBR) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Nabors Industries missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share expanded.


Gross margins dropped, operating margins shrank, net margins grew.

Revenue details
 Nabors Industries reported revenue of $1.60 billion. The 17 analysts polled by S&P Capital IQ wanted to see sales of $1.66 billion on the same basis. GAAP reported sales were 6.2% lower than the prior-year quarter's $1.73 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 $0.22. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. Non-GAAP EPS of $0.22 for Q4 were 58% lower than the prior-year quarter's $0.52 per share. (The prior-year quarter included -$0.67 per share in earnings from discontinued operations.) GAAP EPS were $0.09 for Q4 versus -$0.37 per share for the prior-year quarter.

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 36.1%, 120 basis points worse than the prior-year quarter. Operating margin was 11.1%, 480 basis points worse than the prior-year quarter. Net margin was 1.7%, 780 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.72 billion. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $6.87 billion. The average EPS estimate is $1.33.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nabors Industries is hold, with an average price target of $17.89.

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The article The Gory Details on Nabors Industries's Double Fumble 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 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.

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