Nabors Industries Shares Down 7%
Nabors Industries Ltd. (NYSE:NBR) shares were trading more than 7% lower Monday afternoon following the company’s 2021 Virtual Analyst Meeting, where the company delivered a series of presentations highlighting its industry outlook and vision through 2023 and beyond, operational priorities, balance sheet outlook, and Energy Transition strategy.
Despite the stock sell-off, analysts at RBC Capital said that they came away from the session with an enhanced appreciation for the technology capability within the company and believe continued execution on its strategic priorities could potentially lead them to become more constructive as a recovery in global land drilling activity unfolds.
| Symbol | Price | %chg |
|---|---|---|
| APEX.JK | 120 | 0 |
| NOBLE.CO | 220 | 0 |
| 1033.HK | 0.65 | 0 |
| 600871.SS | 2.1 | 0 |
Nabors Industries Ltd. (NYSE: NBR) Faces Financial Setbacks in Q3 2024
- Nabors Industries Ltd. (NYSE:NBR) reported a significant loss per share of -$6.06, missing the estimated EPS by a wide margin.
- The company's revenue for the quarter was $743.31 million, slightly below the estimated $751 million, marking a 2.46% shortfall from the Zacks Consensus Estimate.
- Despite the financial setbacks, Nabors' adjusted EBITDA saw a slight increase to $222 million, and the company remains optimistic about future growth, especially with the acquisition of Parker Wellbore.
Nabors Industries Ltd. (NYSE: NBR) operates in the oil and gas drilling industry, providing drilling and rig services. The company faces competition from other industry players like Helmerich & Payne and Patterson-UTI Energy. Nabors recently reported its financial results for the third quarter of 2024, revealing a challenging period with significant financial setbacks.
On October 22, 2024, Nabors reported an earnings per share (EPS) of -$6.06, which was significantly lower than the estimated EPS of -$1.73. This result marks a negative surprise of 93.64%, as highlighted by Zacks. Despite this, it shows an improvement from the previous year's loss of $5.40 per share. Over the past four quarters, Nabors has consistently failed to exceed consensus EPS estimates.
Nabors' actual revenue for the quarter was $743.31 million, slightly below the estimated $751 million. This represents a 2.46% shortfall from the Zacks Consensus Estimate. The company has only surpassed consensus revenue estimates once in the last four quarters. Compared to the previous year, revenue decreased slightly from $744.14 million.
The company experienced a net loss of $56 million for the quarter, translating to a loss of $6.86 per diluted share. This is a larger loss compared to the $32 million net loss in the previous quarter. The third quarter results included net charges of approximately $25 million, mainly due to the redemption premium on the 2026 notes and market adjustments on investments.
Despite these challenges, Nabors' adjusted EBITDA increased to $222 million from $218 million in the prior quarter. Anthony G. Petrello, Nabors' Chairman, CEO, and President, expressed optimism about the company's future, particularly with the announced acquisition of Parker Wellbore. He noted that the portfolios of both companies are highly complementary, suggesting potential synergies and growth opportunities.
