Dahlman Rose Discussses Earnings From Nabor Industries (NBR)

Dahlman Rose & Co. has a Hold rating on shares of Nabor Industries NBR after it reported earnings yesterday. In a note to investors, Dahlman Rose writes, "Nabors 1Q11 EPS of $0.29 was below our $0.35 and the Street's $0.34 estimate. The impact of bad weather in the US, supply chain disruptions at Canrig and international interruptions (mainly in the Middle East) had a negative impact. US Lower 48 land drilling results decreased as expected with EBIT down to $80.1MM from $85.3MM sequentially, but was in line with our $80.0MM forecast. Average rigs working increased to 187.9 from 184.3 however increased G&A expenses related mainly to 1Q operations resulted in the lower operating income q/q. Nabors' rig count is currently at 196 and management expects both the rig count and margins to increase meaningfully throughout the remainder of 2011." Shares of NBR are up 44 cents in pre-market trading to $32.50, a gain of 1.4%.