NYSE$NOV

NOV Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

NOV reported first quarter 2024 results with revenue increase and capital return framework.

NOV Inc. reported a solid start to 2024 with a 10% year-over-year revenue increase, driven by strong growth in international land and offshore markets. The company announced a plan to return at least 50% of Excess Free Cash Flow annually through dividends and share repurchases, with board authorization to repurchase up to $1.00 billion of shares. Net income was $119 million, a slight decrease compared to the previous year, while adjusted EBITDA increased by 24% to $241 million.

  • Revenue increased by 10% year-over-year to $2.16 billion, driven by international and offshore markets.
  • Operating profit rose to $162 million, a $36 million increase year-over-year.
  • Net income was $119 million, a decrease of $7 million year-over-year.
  • Adjusted EBITDA increased by 24% year-over-year to $241 million.

Headline financials

Total Revenue

$2.16B

Previous: $1.96B+9.8%
EPS

$0.30

Previous: $0.32-6.3%
Cash flow from operations

-$78M

No prior period
Capital Expenditures

-$69M

Previous: -$57M-21.1%
Free Cash Flow

$50M

Previous: $69M-27.5%
Net Income

$119M

Previous: $126M-5.6%
Operating Income

$162M

Previous: $126M+28.6%
Gross Profit

$458M

Previous: $411M+11.4%
Cash & Equivalents

$468M

Previous: $774M-39.5%
Total Assets

$11.3B

Previous: $10.2B+11.1%
Stock-Based Comp

$19M

Previous: $15M+26.7%

Revenue & EPS history

NOV · Revenue · Quarterly

$2.16B

Q1 2024+9.8%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

NOV · $1.56B total across 2 segments · Q2 2023

  • Energy Products & Services
    $804M+20.7%
  • Energy Equipment
    $753M+17.8%

Forward guidance

For the second quarter of 2024, management expects year-over-year consolidated revenues to increase between one to five percent and Adjusted EBITDA to be in the range of $260 million to $280 million. For full year 2024, management anticipates consolidated company revenue growth in the mid-single percentage range and adjusted EBITDA to be in the range of $1.10 billion to $1.25 billion.

Tailwinds

  • Year-over-year consolidated revenues expected to increase between one to five percent for Q2 2024.
  • Adjusted EBITDA to be in the range of $260 million to $280 million for Q2 2024.
  • Consolidated company revenue growth in the mid-single percentage range for full year 2024.
  • Adjusted EBITDA to be in the range of $1.10 billion to $1.25 billion for full year 2024.
  • Expects rising oilfield demand for NOV’s products and technologies.

Headwinds

  • Guidance is subject to a number of known and unknown uncertainties and risks.
  • Seasonal changes in working capital together with two strategic acquisitions drove a net use of cash during the first quarter of 2024.
  • Actual results may differ materially from the guidance set forth.
  • The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations.
  • The declaration and payment of any future dividend is subject to the sole discretion of the Company’s board of directors and will depend on our earnings, financial condition, capital requirements, level of indebtedness, applicable statutory and contractual restrictions and other considerations that the board of directors deems relevant.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.2%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.1%

Avg return

30 days after

42%

30 / 72 earnings

Positive

+14.3%

Q3 2019

Best reaction

-11.8%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+3.0%+7.1%
Q4 2025+0.8%+3.0%+7.1%
Q3 2025+7.1%+4.7%+8.2%
Q1 2025-2.0%+0.2%+0.3%
Q4 2024+12.7%+9.3%+2.6%
Q3 2024+2.9%+0.5%+8.7%
Q2 2024+8.8%+12.1%-1.4%
Q1 2024+0.2%-1.8%-3.1%
Q4 2023-9.7%-10.2%-12.4%
Q3 2023+0.8%+2.6%-2.0%
Q2 2023-1.8%+6.4%+6.6%
Q1 2023-9.0%-8.1%-17.3%
Q4 2022+0.0%+3.3%-3.0%
Q3 2022-3.8%+0.3%-1.0%
Q2 2022+11.1%+18.4%+22.5%
Q1 2022-2.2%+0.6%+8.6%
Q4 2021-7.4%-10.2%+4.7%
Q3 2021-0.1%-4.4%-12.2%
Q2 2021-3.4%-3.1%-8.4%
Q1 2021+10.4%+10.9%+20.5%
Q4 2020-1.8%-13.5%-20.6%
Q3 2020-6.5%-8.6%+48.0%
Q2 2020-9.3%-9.7%-6.5%
Q1 2020-2.1%-2.7%+10.3%
Q4 2019+8.7%+4.9%-29.5%
Q3 2019+14.3%+11.0%+9.3%
Q2 2019+6.0%+1.7%-11.7%
Q1 2019+3.4%-1.3%-15.5%
Q4 2018-5.2%-4.5%-14.3%
Q3 2018-2.6%+0.8%-14.2%
Q2 2018+10.8%+14.9%+5.8%
Q1 2018+1.5%+0.6%+7.8%
Q4 2017-0.8%-7.3%+2.3%
Q3 2017-1.2%+1.7%-5.3%
Q2 2017-0.7%-4.4%-8.5%
Q1 2017-2.3%-4.4%-8.5%
Q4 2016+4.7%+5.2%+0.6%
Q3 2016-6.8%-11.2%-0.6%
Q2 2016+3.5%+2.0%+10.5%
Q1 2016+13.7%
Q4 2015-6.8%
Q3 2015+1.4%
Q2 2015+5.4%
Q1 2015-3.2%
Q4 2014-7.2%
Q3 2014-0.1%
Q2 2014-3.5%
Q1 2014-6.4%
Q4 2013+0.1%
Q3 2013+4.8%
Q2 2013-1.4%
Q1 2013-1.9%
Q4 2012-5.4%
Q3 2012-2.9%
Q2 2012+9.4%
Q1 2012-1.6%
Q4 2011-1.3%
Q3 2011-2.3%
Q2 2011-11.8%
Q1 2011+1.0%
Q4 2007-2.4%
Q4 2010-2.4%
Q3 2010+0.1%
Q2 2010-1.0%
Q1 2009+0.8%
Q1 2010+2.8%
Q4 2009+1.1%
Q3 2008+4.9%
Q3 2009+4.9%
Q2 2009-1.1%
Q2 2008-1.1%
Q4 2008-1.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro