NYSE$NOV

NOV Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter earnings with increased revenue and profitability.

NOV Inc. reported a strong second quarter in 2023, with revenues of $2.09 billion, up 21% year-over-year, and net income of $155 million. The company saw growth across its segments, driven by rising demand in offshore and international land markets. Adjusted EBITDA increased to $245 million, reflecting improved operational performance.

  • Revenue increased by 21% year-over-year to $2.09 billion.
  • Operating profit rose to $181 million, up $113 million year-over-year.
  • Net income reached $155 million, an increase of $86 million year-over-year.
  • Fully diluted earnings per share were $0.39, up $0.21 year-over-year.

Headline financials

Total Revenue

$2.09B

Previous: $1.73B+21.2%
EPS (adj)

$0.39

Previous: $0.18+116.7%
Capital Expenditures

-$133M

Previous: -$89M-49.4%
Free Cash Flow

$22M

Previous: -$20M+210.0%
Net Income

$155M

Previous: $69M+124.6%
Operating Income

$181M

Previous: $68M+166.2%
Gross Profit

$457M

Previous: $309M+47.9%
Cash & Equivalents

$592M

Previous: $1.22B-51.4%
Total Assets

$10.4B

Previous: $9.7B+7.7%
Stock-Based Comp

$17M

Previous: $33M-48.5%

Revenue & EPS history

NOV · Revenue · Quarterly

$2.09B

Q2 2023+21.2%vs Q2 2022
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

The company anticipates continued demand for its equipment and technologies, expecting improved profitability and sequentially improving free cash flow, particularly in the fourth quarter and continuing into 2024. Inventory balances are expected to remain elevated as supply chains normalize, before reversing out in the fourth quarter.

Tailwinds

  • Substantial backlog of oil and gas development projects across offshore and international land markets will continue to push oilfield service asset utilization higher.
  • Anticipate continued demand for NOV’s critical equipment and technologies.
  • Global supply chain is continuing to improve, which is positively impacting sales growth and profitability.
  • Expect improved profitability as the pace of customer backlog conversion accelerates through the second half of the year.
  • Expect sequentially improving free cash flow, particularly in the fourth quarter and continuing into 2024.

Headwinds

  • Economic uncertainty.
  • Continued declines in North American rig activity.
  • Compressing delivery times from most, but not all, of our vendors led to higher inventories in the second quarter.
  • Higher inventories in the second quarter contributed to NOV’s working capital growth and cash draw.
  • Expect inventory balances to remain elevated as supply chains normalize.

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 Q2 2023

Historical avgQ2 2023

+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%

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