What Analysts Expect for National Oilwell Varco in 1Q18



NOV’s 1Q18 earnings estimates

In 1Q18, Wall Street analysts expect National Oilwell Varco (NOV) to post adjusted EPS (earnings per share) of -$0.01, compared with -$0.04 in 4Q17. National Oilwell Varco expects higher crude oil prices and horizontal drilling and hydraulic fracturing, which can enable energy production from poor-quality reservoirs and enhance profitability, to boost earnings in 1Q18.

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NOV’s earnings versus estimates

National Oilwell Varco’s adjusted EPS nearly matched analysts’ EPS estimate in 4Q17. On average, NOV’s adjusted EPS have exceeded estimates by ~11% in the past 13 quarters. From 4Q16 through 4Q17, NOV cut its adjusted loss significantly. NOV comprises 5.6% of the iShares US Oil Equipment & Services ETF (IEZ), which tracks an index of US equities in the oil equipment and service sector. In the past year, IEZ has fallen 12%, while NOV has risen 1%.

Analysts’ estimates for NOV’s peers

Analysts expect Oceaneering International (OII), NOV’s smaller-market-cap peer, to see steep EPS losses between 4Q17 and 1Q18. Meanwhile, they expect TechnipFMC’s (FTI) adjusted EPS to improve 66% quarter-over-quarter in 1Q18, and Helmerich & Payne’s (HP) EPS to fall from the ~$0.02 it saw in 4Q17.

NOV’s 1Q18 revenue estimates

Analysts expect National Oilwell Varco to post revenue of $1.9 billion in 1Q18, 2.5% lower than its 4Q17 revenue. In this series, we’ll look at NOV’s 4Q17 value drivers, what indicators suggest for NOV, and analysts’ recommendations.


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