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NOV (NYSE:NOV) finished Friday’s trading -11.2% to post its lowest close in nearly seven months despite easily beating Q4 earnings estimates, after saying it sees FY 2024 revenues rising by a below-consensus 4%-8%, citing expected oilfield spending declines in North America.
A forecast of 4%-8% revenue growth would translate to $8.92B-$9.27B, lower than consensus expectations for a ~8% increase to $9.26B.
CEO Clay Williams also noted NOV (NOV) was encountering more supply chain disruptions than peers, saying on the post-earnings conference call that it “faced a lot of headwinds with respect to supply chain disruptions, more so than I think anybody else in oilfield services, along with inflation.”
Q4 net income jumped to $598M, or $1.52/share, from $104M, or $0.27/share, in the year-earlier quarter, while revenues rose 7% Q/Q and 13% Y/Y to $2.34B.
Q4 revenues by segment: Wellbore Technologies up 8.1% Y/Y to $824M, Completion and Production up 8.8% to $803M, Rig Technologies up 24% to $766M.
Q4 adjusted EBITDA increase 27% Y/Y to $294M but came in below $300M analyst consensus estimate.
