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What Analysts Expect for National Oilwell Varco in 1Q18

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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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