NYSE$NOV

NOV Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

NOV's Q3 2023 earnings were reported, featuring revenue and margin improvements driven by strong international and offshore markets, which offset the impact of softened North American land activity.

NOV Inc. reported Q3 2023 revenues of $2.19 billion, a 16% increase year-over-year. Net income was $114 million, and operating profit was $183 million. Adjusted EBITDA increased to $267 million, or 12.2 percent of sales.

  • Revenue reached $2.19 billion, reflecting a 4% sequential increase and a 16% year-over-year increase.
  • Operating profit was $183 million, up $2 million sequentially and $128 million year-over-year.
  • Net income amounted to $114 million, a sequential decrease of $41 million but an increase of $82 million year-over-year.
  • Fully diluted earnings per share were $0.29, down $0.10 sequentially but up $0.21 year-over-year.

Headline financials

Total Revenue

$2.19B

Previous: $1.89B+15.7%
EPS (adj)

$0.29

Previous: $0.08+262.5%
Capital Expenditures

-$207M

Previous: -$148M-39.9%
Free Cash Flow

-$93M

Previous: -$116M+19.8%
Net Income

$114M

Previous: $32M+256.3%
Operating Income

$183M

Previous: $55M+232.7%
Gross Profit

$468M

Previous: $368M+27.2%
Cash & Equivalents

$513M

Previous: $998M-48.6%
Total Assets

$10.5B

Previous: $9.76B+7.6%
Stock-Based Comp

$17M

Previous: $17M+0.0%

Revenue & EPS history

NOV · Revenue · Quarterly

$2.19B

Q3 2023+15.7%vs Q3 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

NOV anticipates working capital to normalize, leading to positive free cash flow in the fourth quarter and improved cash generation in 2024. They expect rising demand and improved cost structure to drive better profitability, greater cash flow, and higher returns on capital employed.

Tailwinds

  • Normalization of working capital expected, leading to positive free cash flow in Q4.
  • Improved cash generation is anticipated in 2024.
  • Rising demand is expected to improve profitability.
  • Actions to improve cost structure should drive improved profitability.
  • Technically differentiated products are driving customer adoption.

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 2023

Historical avgQ3 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%

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