Factors You Need to Know Ahead of NOV's Q1 Earnings Release

NOV Inc. NOV is set to release first-quarter 2025 results on April 28, 2025. The Zacks Consensus Estimate for earnings is pegged at 25 cents per share and the same for revenues is pinned at $2.10 billion.

Let us delve into the factors that are likely to have influenced the oilfield service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at NOV’s performance in the last reported quarter.

Highlights of NOV’s Q4 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oil and gas equipment company beat the consensus mark on improving cost control and higher-margin projects in its Energy Equipment segment. NOV reported adjusted earnings per share of 41 cents, surpassing the Zacks Consensus Estimate of 35 cents. Revenues of $2.2 billion were up 3.2% from the consensus mark.

NOV’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing once. The earnings surprise was 21.35%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

This is depicted in the graph below:

NOV Inc. Price and EPS Surprise

NOV Inc. price-eps-surprise | NOV Inc. Quote

Trend in NOV’s Estimate Revision

The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings has not witnessed any movement in the past seven days. The estimated figure indicates a 2.61% year-over-year decrease. The Zacks Consensus Estimate for revenues indicates a 16.67% decrease from the year-ago period.

Factors to Consider Ahead of NOV’s Q1 Release

NOV's total revenues are expected to have suffered in the quarter to be reported. The company makes money by selling tools and equipment used to drill and produce oil and gas. These include things like drill bits, pipes and machinery for onshore and offshore drilling.

The Zacks Consensus Estimate predicts first-quarter revenues to decrease from the year-ago quarter’s $2,155 million. The Energy Products and Services segment is expected to generate $998.6 million, down from $1,017 million in the year-ago period. The Energy Equipment segment is expected to reach $1,135 million, down from $1,178 million in the year-ago period. The performance of these segments might have influenced revenues in the to-be-reported quarter.

On a more positive note, the decrease in NOV’s costs might have improved its to-be-reported bottom line. The company’s first-quarter cost of goods sold is likely to reach $1,669.5 million, down 1.6% from the year-ago quarter’s level. On the other hand, NOV’s selling, general and administrative expenses are likely to total $255.2 million, down 13.8% from the year-ago quarter’s level. This reflects the company’s strategic focus on streamlining operations and maintaining financial discipline in a challenging market environment.

What Does Our Model Predict for NOV?

The proven Zacks model does not conclusively predict an earnings beat for NOV this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

NOV’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -3.61%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NOV’s Zacks Rank:  NOV currently carries a Zacks Rank #3.

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Antero Resources Corporation AR has an Earnings ESP of +7.02% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is scheduled to release earnings on April 30. Notably, the Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates 1,100% year-over-year growth. Valued at around $9.98 billion, Antero Resources’ shares have gained 5.8% in a year.

TC Energy Corporation TRP has an Earnings ESP of +5.11% and a Zacks Rank #2 at present. The company is scheduled to release earnings on May 1.

TC Energy is an energy infrastructure company in North America, operating through four segments: Canadian, the U.S. and Mexico Natural Gas Pipelines, as well as Power and Energy Solutions. Valued at around $50.37 billion, TC Energy’s shares have gained 36.1% in a year.

Comstock Resources, Inc. CRK has an Earnings ESP of +22.33% and a Zacks Rank #3 at present. The company is scheduled to release earnings on April 30.

The Zacks Consensus Estimate for Comstock Resources’ 2025 earnings per share indicates 600% year-over-year growth. Valued at around $5.46 billion, Comstock Resources’ shares have gained 88.4% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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