Can National Oilwell Varco Beat These Numbers?

Seth Jayson, The Motley Fool
Updated

National Oilwell Varco (NYS: NOV) is expected to report Q1 earnings on April 16. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict National Oilwell Varco's revenues will expand 25.0% and EPS will contract -5.6%.

The average estimate for revenue is $5.38 billion. On the bottom line, the average EPS estimate is $1.36.


Revenue details
 Last quarter, National Oilwell Varco logged revenue of $5.69 billion. GAAP reported sales were 33% higher than the prior-year quarter's $4.26 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $1.49. GAAP EPS of $1.56 for Q4 were 16% higher than the prior-year quarter's $1.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 24.5%, 540 basis points worse than the prior-year quarter. Operating margin was 15.9%, 400 basis points worse than the prior-year quarter. Net margin was 11.8%, 170 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $22.87 billion. The average EPS estimate is $5.99.

Investor sentiment

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 $92.08.

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The article Can National Oilwell Varco Beat These Numbers? 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 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.

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