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National Oilwell Varco opens lower as earnings slide

  • National Oilwell Varco (NOV -2.7%) opens lower after posting a 12% Y/Y decline in Q2 earnings on higher costs.
  • Rig technology revenue 18% to $2.83B, petroleum service and supplies revenue fell 2% to $1.75Bm distribution and transmission revenue grew 66% to $1.3B on acquisitions made last year.
  • Landed $3.15B in rig technology orders during Q2, raising its backlog to a record $13.95B.
Comments (8)
  • Daniel Niño
    , contributor
    Comments (56) | Send Message
     
    I don't understand at all this drop, those look like positive numbers to me!
    30 Jul 2013, 10:24 AM Reply Like
  • bobolaclune
    , contributor
    Comments (46) | Send Message
     
    earnings down 12% YoY? it's not all good news! some of the margins numbers looked pretty bad, and management even stated that it was not happy with its operational performance. one for the long-term, but it deserves a bit of scolding here
    30 Jul 2013, 11:07 AM Reply Like
  • Daniel Niño
    , contributor
    Comments (56) | Send Message
     
    Of course there are also bad news, but the good ones are really good, especially the rig revenue +18% and the record backlog $13.95B. IMO the market is overreacting (again).
    30 Jul 2013, 11:38 AM Reply Like
  • MichaelJ8
    , contributor
    Comments (637) | Send Message
     
    earning down 12% is not news, it was known. In fact eps met expectations. Revenue beat. Watch the stock fly to 80 in august.

     

    Looking at the options activity, the stock ending up in the 69-70 range probably brings the most pain.... not talking conspiracy here, just sayin...

     

    Another way to look at the earnings report is summarized in this phase: "Customers are demanding so much from us the only thing we can do is spend more money on personnel and logistics in order to meet this crazy demand.... "

     

    In all honesty, i dont know how customers demanding more can be considered a bad thing. Sure it might raise costs initially, but thats called investment.
    30 Jul 2013, 09:56 PM Reply Like
  • Jone
    , contributor
    Comment (1) | Send Message
     
    Me neither. Finance stats looks good to me, decent amount of long term debt, positive operating CF, low capex, relatively high cash balance. Could it be goodwill which is affecting investors ? I don´t know in detail what GW includes this case. But started to look this company recently believing there will be oil&gas industry also in future. If someone could open case, what´s so bad coming in near future if so ?
    30 Jul 2013, 11:20 AM Reply Like
  • joelkatz
    , contributor
    Comments (462) | Send Message
     
    Profit margin decreased.
    30 Jul 2013, 11:40 AM Reply Like
  • Klimbim
    , contributor
    Comments (49) | Send Message
     
    Frankly, I am getting rather tired of this "Jack of all Trades" For the
    past year it has been treading water and going nowhere. Other more specialised companies have done comparatively far better. I think it is time to pull the plug......
    30 Jul 2013, 11:42 AM Reply Like
  • Mike Walker
    , contributor
    Comments (311) | Send Message
     
    not so easy to integrate all those acquisitions but definitely one for the long haul
    30 Jul 2013, 12:00 PM Reply Like
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