NYSE$NOV

NOV Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a decrease in revenue but improved net loss due to cost reduction and working capital initiatives.

National Oilwell Varco reported a decrease in revenue compared to the previous quarter and the same quarter last year. However, the company's net loss improved sequentially due to solid execution on cost reduction and working capital initiatives. The company generated significant cash flow from operations and reduced net debt during the quarter. Despite challenging market conditions, the company is seeing encouraging signals in North America and international markets.

  • Third quarter revenues were $1.38 billion, a decrease of seven percent compared to the second quarter of 2020 and a decrease of 35 percent compared to the third quarter of 2019.
  • Net loss for the third quarter of 2020 improved $38 million sequentially to $55 million.
  • Adjusted EBITDA decreased $13 million sequentially to $71 million, or 5.1 percent of sales.
  • Generated $323 million in cash flow from operations and a reduction in net debt to $339 million during the third quarter of 2020.

Headline financials

Total Revenue

$1.38B

Previous: $2.13B-34.9%
EPS (adj)

$0.02

Previous: -$0.07+128.6%
Capital Expenditures

-$173M

Previous: -$166M-4.2%
Free Cash Flow

-$228M

Previous: -$410M+44.4%
Net Income

-$55M

Previous: -$244M+77.5%
Operating Income

-$74M

Previous: -$154M+51.9%
Gross Profit

$139M

Previous: $151M-7.9%
Cash & Equivalents

$1.49B

Previous: $1.31B+13.1%
Total Assets

$10.2B

Previous: $14B-27.4%

Revenue & EPS history

NOV · Revenue · Quarterly

$1.38B

Q3 2020-34.9%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
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

Company sees drilling activity has bottomed and is likely to rise modestly from current levels in North America, and is seeing more of its customers return to work and fewer COVID-19-related logistical disruptions in international markets. Order intake is likely to improve in the fourth quarter.

Tailwinds

  • Drilling activity in North America has bottomed and is likely to rise modestly from current levels.
  • International markets are seeing more customers return to work.
  • COVID-19-related logistical disruptions are decreasing.
  • Rig Technologies segment has seen significant increases in tendering activity.
  • Completion & Production Solutions segments have both seen significant increases in tendering activity.

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 Q3 2020

Historical avgQ3 2020

+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