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What Analysts Expect from Nabors’ 4Q16 Earnings

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Nabors’ 4Q16 earnings estimates

In 4Q16, analysts expect Nabors Industries (NBR) to post ~$0.33 in adjusted loss per share, a marginal improvement over 3Q16’s adjusted loss of $0.35 per share. Higher US rig count and partial drilling activity revivals in Latin America and Saudi Arabia could improve NBR’s 4Q16 results. However, depressed daily US onshore rig margins and activity declines in some of NBR’s international operations will continue to pressure NBR. NBR is expected to hold its 4Q16 earnings conference call on February 22.

Earlier, falling rig count had sent NBR’s 2Q15 adjusted earnings crashing to a $0.14 per share loss. From 3Q15 through 3Q16, adjusted loss dipped steeply, reflecting a depressed energy market environment. NBR is 0.14% of the iShares US Energy ETF (IYE).

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Nabors Industries’ earnings versus estimates

In 3Q16, Nabors Industries’ adjusted earnings exceeded analysts’ consensus estimates. As noted in the graph above, Nabors Industries’ adjusted earnings per share (or EPS) beat estimates in many quarters in the past. Adjusted EPS beat consensus EPS in the past 13 quarters.

Analyst estimates for NBR peers

Wall Street analysts’ estimates for Patterson-UTI Energy (PTEN) beat the consensus sell-side analyst EPS estimate in 4Q16. Tidewater’s (TDW) fiscal 3Q17 adjusted loss beat the consensus sell-side analyst EPS estimate. In comparison, Fairmount Santrol Holdings’ (FMSA) 4Q16 estimated loss is expected to deteriorate over its 3Q16 adjusted earnings. Read a comparison of the large oilfield services companies in Market Realist’s Energy’s Price Recovery Prompts an Oilfield Services Revival.

Series highlights

In this series, we’ll discuss Nabors Industries’ management guidance, value drivers, industry indicators affecting NBR’s performance, and analysts’ target prices for NBR. Next, we’ll discuss how NBR’s financial performance transpired in recent quarters.

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