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National Oilwell Varco (NOV) is scheduled to report its Q2 2012 results on July 26, 2012, before the market opens. The Street expects EPS and revenue of $1.41 and $4.44 billion, respectively.

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

National Oilwell Varco, Inc. Revenue and Net Income History

Recent EPS -- Actual vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $1.44 EPS, beating analyst estimates of $1.40.

National Oilwell Varco, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $1.41 based on 24 analysts' estimates, up from $1.14 a year ago. Revenue estimates are $4.44 billion, up from $3.51 billion a year ago. The median target price by analysts for the stock is $91.50.

Average Recommendation: Buy

Source: MarketWatch.

Analyst Upgrades and Downgrades

  • On June 20, 2012, HSBC Securities initiated an Overweight rating for the company.
  • On June 18, 2012, Raymond James downgraded the company from Strong Buy to Outperform.
  • On April 1, 2012, Howard Weil downgraded the company from Market Outperform to Market Perform.
  • On Feb. 2, 2012, Global Hunter Securities upgraded the company from Accumulate to Buy.

Latest News

  • On July 19, 2012, National Oilwell Varco, Inc. and CE Franklin Ltd. announced that NOV Distribution Services ULC (NDS), a wholly-owned subsidiary of NOV, has completed its previously-announced acquisition of CE Franklin pursuant to a plan of arrangement.
  • On May 31, 2012, National Oilwell Varco, Inc. announced the closing of its previously announced acquisition of Wilson distribution business segment from Schlumberger Limited.
  • On April 11, 2012, Schlumberger Limited announced that it has entered into an agreement with National-Oilwell Varco, Inc. to sell its Wilson distribution business. Schlumberger acquired Wilson International Inc. as part of the acquisition of Smith International in 2010.
  • On April 4, 2012, NKT Holding A/S announced that the NKT Holding and Subsea 7 S.A. has closed and completed a conditional agreement concerning the sale of NKT Flexibles.
  • On Feb. 23, 2012, National-Oilwell Varco, Inc. announced that its Board of Directors declared the regular quarterly cash dividend of $0.12 per share of common stock, payable on March 30, 2012 to each stockholder of record on March 16, 2012.
  • On Feb. 3, 2012, Subsea 7 SA announced that the Boards of NKT Holding A/S and Subsea 7 SA. have completed their review of strategic alternatives for the future development of NKT Flexibles which has been operated as a joint venture between NKT Holding A/S (51%) and Subsea 7 S.A. (49%) since 1999.

Competitors

Baker Hughes (BHI), Halliburton (HAL), Schlumberger (SLB), Tenaris (TS), and Weatherford International (WFT) are considered major competitors for National Oilwell Varco. The table below provides the key metrics for these companies and the industry.

National Oilwell Varco, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.

Click to enlarge image.

NOV Chart

Competitors' Latest Developments

  • On July 19, 2012, Schlumberger NV announced that it declared a quarterly dividend of $0.275 per share of outstanding common stock. The dividend is payable on October 12, 2012 to stockholders of record at the close of business on September 3, 2012.
  • On July 8, 2012, Anton Oilfield Services (Group) Ltd. announced that it has received a corporate substantial shareholder notice (the Notice) filed by Schlumberger NV (Schlumberger) pursuant to section 324 of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) that Schlumberger has acquired 423,361,944 shares in Anton Oilfield Services, representing 20.10% of the issued share capital of Anton Oilfield Services, on July 6, 2012.
  • On June 22, 2012, Tenaris SA announced an investment plan to expand its United States operations. The plan includes the installation of a seamless pipe mill, heat treatment and threading facilities with an estimated investment of USD 1.5 billion.
  • On June 20, 2012, Reuters reported that Petroleos Mexicanos (Pemex) announced that it has awarded four contracts to drill mature oil fields in the second round of bidding to open up the country's nationalized oil industry to more private investment.
  • On June 5, 2012, Schlumberger NV announces the launch of IsoMetrix marine isometric seismic technology and the IsoMetrix family of marine seismic products. This technology outputs isometrically sampled point-receiver data in both crossline and inline directions-capturing the returning wavefield in three dimensions and providing the accurate images of the subsurface ever recorded.
  • On May 31, 2012, National Oilwell Varco, Inc. announced the closing of its previously announced acquisition of Wilson distribution business segment from Schlumberger Limited.
  • On May 3, 2012, Reuters reported that BP plc won preliminary court approval of an estimated $7.8 billion settlement to resolve more than 100,000 claims by individuals and businesses stemming from the 2010 Gulf of Mexico oil spill.
  • On May 3, 2012, Halliburton Company And Gazprom International announced that it has signed a Strategic Cooperation Agreement with Gazprom International for the development and implementation of new oil and gas technologies in global exploration and production projects.
  • On April 30, 2012, Tesco Corp and Schlumberger NV announced that they have signed a definitive agreement for Schlumberger to acquire Tesco's CASING DRILLING division for $45 million in cash.
  • On April 26, 2012, Baker Hughes Inc. announced that the Board of Directors declared the regular quarterly cash dividend of $0.15 per share of common stock payable May 18, 2012, to holders of record on May 7, 2012.
  • On April 24, 2012, Weatherford International Ltd. announced that for the second quarter of 2012, it expects diluted earnings per share (EPS) before excluded items of approximately $0.24 to $0.26. According to I/B/E/S Estimates, analysts were expecting the company to report EPS of $0.27 for the second quarter of 2012.
  • On April 19, 2012, Schlumberger Limited announced that its Board of Directors declared a quarterly dividend of $0.275 per share of outstanding common stock. The dividend is payable on July 13, 2012 to stockholders of record at the close of business on June 1, 2012.
  • On April 11, 2012, Schlumberger Limited announced that it has entered into an agreement with National-Oilwell Varco, Inc. to sell its Wilson distribution business. Schlumberger acquired Wilson International Inc. as part of the acquisition of Smith International in 2010.
  • On April 10, 2012, Law office of Brodsky & Smith, LLC announced that it is investigating potential violations of the Securities Exchange Act of 1934 by Weatherford International, Ltd.
  • On March 31, 2012, Weatherford International Ltd. (Weatherford Bermuda) and a subsidiary of Weatherford International Ltd., a Swiss joint-stock corporation, announced the pricing of the offering by Weatherford Bermuda of $750 million aggregate principal amount of 4.50% Senior Notes due 2022 at a public offering price of 99.855% and $550 million aggregate principal amount of 5.95% Senior Notes due 2042 at a public offering price of 99.291%. Weatherford and Weatherford International, Inc., a Delaware corporation and subsidiary of Weatherford, will fully and unconditionally guarantee the notes on a senior, unsecured basis.
  • On March 30, 2012, Weatherford International Ltd. announced that it has commenced an offering of senior notes. Weatherford and Weatherford International, Inc., a Delaware corporation and subsidiary of Weatherford, will fully and unconditionally guarantee the notes on a senior, unsecured basis.
  • On March 26, 2012, Rigrodsky & Long, P.A. announced that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the securities of Weatherford International Ltd. between March 2, 2011, and Feb. 21, 2012 (the Class Period), alleging violations of the Securities Exchange Act of 1934 against the company and certain of its officers and directors.
  • On March 24, 2012, Faruqi & Faruqi, LLP announced that it has filed a class action lawsuit in the United States District Court for the Southern District of New York, Case No. 12 Civ. 2121, on behalf of all persons who purchased Weatherford International Ltd. common stock between March 2, 2011, and Feb. 21, 2012, inclusive (the Class Period).
  • On March 23, 2012, Weatherford International Ltd. announced that John H. Briscoe has been appointed as Senior Vice President and Chief Financial Officer. Briscoe joined Weatherford in August of 2011 as Vice President and Chief Accounting Officer.
  • On March 12, 2012, Dow Jones reported that Baker Hughes Inc. has joined BP Plc and Schlumberger Limited on separate talks with Iraq to more than double output from the country's Kirkuk oil field in northern Iraq.
  • On Feb. 21, 2012, Weatherford International Ltd. announced that for the first quarter of 2012, it expects to report fully diluted earnings per share of approximately $0.30 before excluded items.
  • On Feb. 17, 2012, Halliburton Company announced that its Board of Directors have declared a 2012 first-quarter dividend of $0.09 a share on the company's common stock payable March 28, 2012, to shareholders of record at the close of business on March 7, 2012.
  • On Feb. 10, 2012, Halliburton Company and PETRONAS Carigali Sdn Bhd announced that they have signed a Framework Agreement for the evaluation and development of global shale resources.

Technical Overview


The stock has a market capitalization of $29.50 billion and was recently trading at $69.21, with a 52-week range of $47.97-$87.72. The stock's year-to-date performance has been 2.12%. It is currently trading above 20- and 50-day SMAs, but below the 200-day SMA.

Data sourced from Yahoo Finance, Google Finance, Marketwatch, Finviz, and Reuters.

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

Source: Earnings Preview For National Oilwell Varco