Valaris Earnings Preview

Valaris VAL is set to give its latest quarterly earnings report on Wednesday, 2024-10-30. Here's what investors need to know before the announcement.

Analysts estimate that Valaris will report an earnings per share (EPS) of $1.10.

The market awaits Valaris's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $1.31, leading to a 6.37% drop in the share price on the subsequent day.

Here's a look at Valaris's past performance and the resulting price change:

Market Performance of Valaris's Stock

Shares of Valaris were trading at $49.59 as of October 28. Over the last 52-week period, shares are down 27.29%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Insights Shared by Analysts on Valaris

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Valaris.

With 6 analyst ratings, Valaris has a consensus rating of Buy. The average one-year price target is $72.67, indicating a potential 46.54% upside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of Helmerich & Payne, Patterson-UTI Energy and Seadrill, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Helmerich & Payne is favoring an Neutral trajectory, with an average 1-year price target of $35.33, suggesting a potential 28.76% downside.
• For Patterson-UTI Energy, analysts project an Outperform trajectory, with an average 1-year price target of $11.56, indicating a potential 76.69% downside.
• The prevailing sentiment among analysts is an Buy trajectory for Seadrill, with an average 1-year price target of $64.0, implying a potential 29.06% upside.

Snapshot: Peer Analysis

In the peer analysis summary, key metrics for Helmerich & Payne, Patterson-UTI Energy and Seadrill are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Valaris ranks highest in Revenue Growth among its peers. It also leads in Gross Profit. However, it ranks second in Consensus rating. Valaris is at the top for Return on Equity.

All You Need to Know About Valaris

Valaris Ltd is the industry leader in offshore drilling services across all water depths and geographies. It is a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups. It operates in Floaters, Jackups, ARO and Others. Its majority of the revenue comes from Floaters segment which includes drillships and semisubmersible rigs.

Breaking Down Valaris's Financial Performance

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Valaris's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 46.94%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: Valaris's net margin is impressive, surpassing industry averages. With a net margin of 24.52%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.13%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.41%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.53.

To track all earnings releases for Valaris visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.