Nov Inc. Reports Earnings Miss Amid Market Challenges
Nov Inc. (NOV) reported quarterly earnings of $0.33 per share, falling short of the Zacks Consensus Estimate of $0.35 per share. This outcome reflects an increase from earnings of $0.29 per share a year ago, adjusted for non-recurring items.
With an earnings surprise of -5.71%, this marks a shift from the previous quarter, where the company had an impressive earnings of $0.57 per share against expectations of $0.35, representing a surprise of 62.86%.
Over the last four quarters, Nov Inc. outperformed consensus EPS estimates three times. For the quarter ending in September 2024, the company, part of the Zacks Technology Services sector, reported revenues of $2.19 billion. This figure missed the Zacks Consensus Estimate by 1.95% but matched the revenues from the same period last year. The company has also exceeded revenue estimates three times over the last year.
Looking ahead, the stock’s immediate price movement will largely depend on insights shared during the upcoming earnings call. Since the start of 2024, Nov Inc. shares have declined approximately 24.7%, contrasting sharply with an increase of 21.5% in the S&P 500.
Looking Ahead: What’s Next for Nov Inc.
As Nov Inc. has underperformed in the current year, investors wonder what lies ahead for the stock.
There are no simple answers, but examining the company’s earnings outlook can provide guidance. This involves assessing earnings expectations for the upcoming quarters and how they have recently changed.
Research indicates a strong connection between short-term stock movements and earnings estimate revisions. Investors can monitor these revisions independently or use tools like the Zacks Rank, known for its effectiveness in leveraging earnings estimate trends.
Before the recent earnings announcement, the trend for Nov Inc.’s estimate revisions was mixed. Depending on the latest earnings data, the company is currently graded with a Zacks Rank #3 (Hold), suggesting its performance will align closely with the market in the near term. The consensus estimate for the next quarter stands at $0.43 per share on revenues of $2.37 billion, while projections for the fiscal year estimate earnings of $1.60 per share on revenues of $8.99 billion.
Moreover, it is important to consider how the industry outlook could affect the stock’s performance. The Technology Services sector ranks in the top 27% among over 250 Zacks industries, with the top half historically outperforming the bottom half by more than a two-to-one ratio.
AvePoint, Inc. (AVPT), another player in the Technology Services sector, has yet to release its quarterly results, which are expected on November 7. Analyst projections indicate AvePoint is likely to report earnings of $0.05 per share, a 66.7% increase year-over-year, with anticipated revenues of $83.23 million—a 14.4% rise compared to last year.
Should You Consider Investing in NOV Inc. (NOV)?
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NOV Inc. (NOV): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
