Nabors Industries NBR will release its quarterly earnings report on Tuesday, 2024-10-22. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Nabors Industries to report an earnings per share (EPS) of $-1.73.
Anticipation surrounds Nabors Industries's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings History Snapshot
Last quarter the company missed EPS by $2.44, which was followed by a 10.42% increase in the share price the next day.
Here's a look at Nabors Industries's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | -1.85 | -1.66 | -1.22 | |
| EPS Actual | -4.29 | -4.54 | -1.56 | -6.26 |
| Price Change % | 10.0% | -5.0% | -1.0% | -6.0% |
Nabors Industries Share Price Analysis
Shares of Nabors Industries were trading at $73.09 as of October 18. Over the last 52-week period, shares are down 37.02%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Insights on Nabors Industries
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Nabors Industries.
With 4 analyst ratings, Nabors Industries has a consensus rating of Neutral. The average one-year price target is $94.75, indicating a potential 29.63% upside.
Understanding Analyst Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of Borr Drilling, Seadrill and Patterson-UTI Energy, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Borr Drilling, with an average 1-year price target of $9.0, suggesting a potential 87.69% downside.
- Seadrill is maintaining an Buy status according to analysts, with an average 1-year price target of $64.0, indicating a potential 12.44% downside.
- Patterson-UTI Energy received a Outperform consensus from analysts, with an average 1-year price target of $12.0, implying a potential 83.58% downside.
Summary of Peers Analysis
The peer analysis summary offers a detailed examination of key metrics for Borr Drilling, Seadrill and Patterson-UTI Energy, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Nabors Industries | Neutral | -4.21% | $134.43M | -14.73% |
| Borr Drilling | Outperform | 45.01% | $240M | 3.19% |
| Seadrill | Buy | -9.42% | $112M | 8.45% |
| Patterson-UTI Energy | Outperform | 77.65% | $109.39M | 0.24% |
Key Takeaway:
Nabors Industries ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks in the middle for Return on Equity.
Unveiling the Story Behind Nabors Industries
Nabors Industries Ltd owns and operates land-based drilling rig fleets and is a provider of offshore platform rigs in the United States and international markets. It also provides performance tools, directional drilling services, tubular running services, and innovative technologies. It has operations in over 15 countries, 291 actively marketed rigs for land-based drilling operations and 28 actively marketed rigs for offshore platform drilling operations in the United States and multiple international markets. The company has five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. The key revenue of the company is generated from International Drilling.
Key Indicators: Nabors Industries's Financial Health
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Negative Revenue Trend: Examining Nabors Industries's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -4.21% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.
Net Margin: Nabors Industries's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -5.38%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Nabors Industries's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -14.73%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Nabors Industries's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.85%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Nabors Industries's debt-to-equity ratio surpasses industry norms, standing at 10.06. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Nabors Industries visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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