|
|
|
|
|||||
|
|
|
Nabors Industries Ltd. NBR is set to report third-quarter 2025 earnings on Oct. 28, after the closing bell. The Zacks Consensus Estimate for the top line is pegged at $840.54 million and the same for the bottom line is pinned at a loss of $2.37.
Let us delve into the factors that might have influenced NBR’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
In the last reported quarter, the Hamilton-based oil and gas drilling service company’s loss per share of $2.71 was wider than the consensus estimates of a loss of $2.05. This was primarily due to lower adjusted operating income from its U.S. Drilling and Rig Technologies segments, coupled with increased year-over-year costs, including direct costs, general and administrative expenses, interest expenses and other related expenditures. However, operating revenues of $832.8 million marginally beat the Zacks Consensus Estimate of $831 million, driven by stronger revenue contributions from the aforementioned segments.
NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 142.13%.
This is depicted in the graph below:
Nabors Industries Ltd. price-eps-surprise | Nabors Industries Ltd. Quote
The Zacks Consensus Estimate for third-quarter 2025 earnings has remained unchanged on the upside but recorded a downward revision in the past seven days. The estimated figure indicates a 29.25% year-over-year bottom-line increase. The Zacks Consensus Estimate for revenues indicates an increase of 14.86% from the year-ago period’s level.
NBR makes money by providing essential services to the oil and gas industry. Its revenues are primarily driven by the demand for these services, which is influenced by various factors such as oil and gas prices, exploration and production activity, competition and economic conditions.
The company’s revenues are likely to have improved in the quarter to be reported. The Zacks Consensus Estimate for third-quarter revenues is up from the year-ago quarter’s $743.3 million. This can be attributed to the higher contributions from NBR’s International Drilling and Drilling Solutions and Rig Technologies segments.
Adjusted EBITDA for NBR’s Drilling Solutions is projected to have risen significantly in the third quarter, with estimates pointing to $76.5 million, an increase of 123% compared with $34.3 million in the same period last year. The firm is expected to have benefited from one of the industry’s most comprehensive technology portfolios, which integrates data-driven automation, energy transition hardware and proprietary software to drive margin expansion.
On a bearish note, rising direct costs are likely to have weighed on NBR’s bottom-line performance. We expect the company’s direct costs to reach $466.3 million in the third quarter, which is up $34.6 million from the year-ago quarter’s level of $431.7 million. NBR’s general and administrative expenses are expected to climb by $10.4 million, reaching $74.4 million within the same time. Additionally, its interest expense costs are expected to increase from $159.2 million to $176.7 million in the same time frame.
Our proven model predicts an earnings beat for Nabors Industries this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Earnings ESP of NBR: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate for this company, is +2.32%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NBR’s Zacks Rank: NBR currently carries a Zacks Rank #3.
Nabors Industries is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Cenovus Energy Inc. CVE is scheduled to release earnings on Oct. 31, ahead of the market opening. This Calgary, AB-based integrated oil and gas company has an Earnings ESP of +1.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past four quarters, Cenovus’ earnings beat the Zacks Consensus Estimate twice and missed twice, resulting in an average surprise of 16.25%. Cenovus is valued at around $29.74 billion.
Imperial Oil Limited IMO is scheduled to release earnings on Oct. 31, before the market opens. This Calgary, AB-based integrated oil and gas company has an Earnings ESP of +12.12% and a Zacks Rank #3.
Imperial's earnings beat the Zacks Consensus Estimate in each of the past four quarters, leading to an average surprise of 14.88%. The company is currently valued at approximately $42.36 billion.
Comstock Resources, Inc. CRK is slated to disclose its earnings on Nov. 3, after the market closes. This Frisco, TX-based oil and gas exploration and production company has an Earnings ESP of +2.86% and a Zacks Rank #3.
Comstock Resources’ earnings beat the Zacks Consensus Estimate in each of the past four quarters, leading to an average surprise of 187.67%. The company is currently valued at approximately $5.34 billion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 4 hours | |
| 5 hours | |
| 5 hours | |
| 7 hours | |
| Oct-22 | |
| Oct-22 | |
| Oct-22 | |
| Oct-22 | |
| Oct-21 | |
| Oct-21 | |
| Oct-21 | |
| Oct-20 | |
| Oct-20 | |
| Oct-20 | |
| Oct-20 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite