Earnings Preview: Nabors Industries

| About: Nabors Industries (NBR)

Nabors Industries Ltd. (NBR) is scheduled to report its Q2 2012 results on July 25, 2012, before market opens. The street expects EPS and revenue of $0.39 and $1.74B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from NBR and the news from its closest competitors.

Nabors Industries Ltd. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter it reported $0.65 EPS, beating analyst estimates of $0.50.

Nabors Industries Ltd. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.39 based on 26 analysts' estimates, up from $0.24 a year ago. Revenue estimates are $1.74B, up from $1.36B a year ago. The median target price by analysts for the stock is $21.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On February 23, 2012, UBS reiterated Neutral rating for the company.
  • On February 23, 2012, RBC Capital Mkts reiterated Sector Perform rating for the company.
  • On February 23, 2012, Argus upgraded the company from Hold to Buy.

Latest News

  • On July 17, 2012, Nabors Industries Ltd announced that it expects second quarter 2012 operating results to be below consensus estimates. The shortfall is attributable to lower than expected results primarily from its Pressure Pumping and, to a lesser extent, its International operations, partially offset by better results in its other US land operations.
  • On April 24, 2012, Nabors Industries Ltd. reported its financial results for the first quarter of 2012. Adjusted income derived from operating activities was $321.2 million, compared to $207.6 million in the first quarter of 2011 and $272.7 million in the quarter ended December 31, 2011.
  • On April 19, 2012, TransForce Inc announced that, through its subsidiary I.E. Miller Services, Inc, it has acquired certain assets of Peak USA Energy Services, Ltd. Peak USA, a subsidiary of Nabors Industries Ltd., is a diversified oilfield service company specializing in rig moving, custom heavy hauling, crane and rigging services, and oilfield transportation.


Pioneer Drilling (PDC), Precision Drilling (PDS), Parker Drilling (PKD), and Patterson-UTI Energy (PTEN) are considered major competitors for Nabors Industries and the table below provides the key metrics for these companies and the industry.

Nabors Industries Ltd. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

NBR Chart

NBR data by YCharts

Competitors' Latest Development

  • On June 25, 2012, Pioneer Drilling Co announced that it has received authorization to transfer the listing of its common stock, par value $0.10 per share, from the NYSE MKT to the New York Stock Exchange (NYSE).
  • On April 26, 2012, Parker Drilling Company announced that it has closed its previously announced sale of $125 million aggregate principal amount of 9 1/8% senior notes due 2018 in ? private offering.
  • On April 12, 2012, Parker Drilling Company announced that it has agreed to sell to eligible purchasers an additional $125 million aggregate principal amount of its 9 1/8% Senior Notes due 2018.
  • On March 6, 2012, Gulf Oil & Gas reported that Parker Drilling Company announced the departure of David C. Mannon, President, Chief Executive Officer (CEO) and Director, to pursue other interests effective March 9, 2012.

Technical Overview

The stock has a market capitalization of $4.19B and is currently trading at $14.33 with a 52 week range of $11.05 - $27.63. The stock's year-to-date performance has been -16.84%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Oil & Gas Drilling & Exploration, Earnings
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