Actionable news
0
All posts from Actionable news
Actionable news in WFT: WEATHERFORD INTERNATIONAL PLC,

Sell National Oilwell Varco Into Earnings

Summary

National Oilwell Varco reports Q3 earnings on October 28th.

Analysts expect revenue to decline 11% sequentially. This follows a 19% decline last quarter.

30% of its backlog is related to Petrobras which could be cut any week now.

Revenue and earnings will continue to fall, and so with the stock. Sell NOV into earnings.

National Oilwell Varco employees. Source: nov.com

National Oilwell Varco (NYSE:NOV) reports Q3 earnings on October 28th. Analysts expect revenue of $3.48 billion and eps of $0.56. The revenue estimate implies an 11% decline off of Q2 revenue of $3.91 billion. Investors should focus on the following items:

Rig Systems Remains In Free Fall

While North America land drilling as taken a beating over the past few quarters, it appears that the offshore market is beginning to pick up the slack. Offshore drillers have received praise for their cost containment efforts. That also means vendors like National Oilwell Varco must be hurting.

Source: Shock Exchange

In Q2, revenue from Rig Systems was off 24% sequentially. That's problematic since the...


More