Nabors Industries Ltd. NBR is set to report fourth-quarter earnings on Feb. 12, after the closing bell. The Zacks Consensus Estimate for the top and bottom lines is pegged at $730.4 million and at a loss of $1.86, respectively.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let us delve into the factors that might have influenced NBR’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of NBR’s Q3 Earnings & Surprise History

In the last reported quarter, the Hamilton-based oil and gas drilling service company’s loss per share was wider than the consensus mark. NBR reported a loss per share of $3.35, which was $1.56 higher than the Zacks Consensus Estimate for loss. This was primarily due to higher year-over-year general and administrative expenses, research and engineering expenses, interest expenses and other expenses.  Operating revenues of $731.8 million missed the Zacks Consensus Estimate by 2.4%. NBR’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 128.93%. This is depicted in the graph below:

Trend in NBR’s Estimate Revision

The Zacks Consensus Estimate for fourth-quarter 2024 earnings has not witnessed any movement in the past seven days. The estimated figure indicates a 1.01% year-over-year bottom-line decrease. However, the Zacks Consensus Estimate for revenues indicates an increase of 51.56% from the year-ago period’s level.

Factors to Consider Ahead of NBR’s Q4 Release

NBR’s revenues are likely to have suffered in the quarter to be reported. The company makes money by providing essential services to the oil and gas industry. Its revenues are primarily driven by the demand for these services, which is influenced by various factors such as oil and gas prices, exploration and production activity, competition and economic conditions. Our model predicts fourth-quarter revenues to decrease to $728.9 million from the year-ago quarter’s $737.8 million.  This decrease can be attributed to lower contributions from NBR’s U.S. Drilling, Drilling Solutions and Rig Technologies segments.

Our model indicates that fourth-quarter U.S. Drilling revenues are likely to have dipped 5.9% from the year-ago quarter’s level. Similarly, Drilling Solutions is anticipated to have seen a 9.1% decline from the year-ago quarter’s level. Meanwhile, the Rig Technologies segment is expected to have faced a more significant drop, with revenues forecasted to decrease 16.5% year over year.

On the cost side, the reduction in NBR’s direct costs is expected to have improved its bottom-line performance. We expect the company’s direct costs to have reached $417.3 million, down 1.8% from the year-ago quarter’s level of $424.87 million.

We expect Nabors to have benefited from its high-quality fleet of drilling rigs, including advanced technology rigs likely to have enhanced operational efficiency during the reported quarter. The company’s focus on maintaining a modern and capable fleet has given it a competitive edge, providing better pricing power even in challenging market conditions.

What Does Our Model Predict About NBR?

Our proven Zacks model does not conclusively predict an earnings beat for Nabors Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.

Earnings ESP of NBR: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate for this company is +53.97%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NBR’s Zacks Rank: NBR currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Eni E has an Earnings ESP of +2.69% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved up 1.1%. Valued at around $48.04 billion, E’s shares have lost 8.9% in a year.

Calumet, Inc. CLMT has an Earnings ESP of +7.11% and a Zacks Rank #2.  Valued at around $1.43 billion, CLMT’s shares have gained 1.7% in a year.

Notably, the Zacks Consensus Estimate for CLMT’s 2025 earnings per share indicates 104.46% year-over-year growth.

TC Energy TRP has an Earnings ESP of +2.20% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 14.

TRP’s earnings beat the consensus estimate in each of the trailing four quarters, delivering an average surprise of 12.72%. Valued at around $48.96 billion, TRP’s shares have gained 23.5% in a year.

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Nabors Industries Ltd. (NBR) : Free Stock Analysis Report

Eni SpA (E) : Free Stock Analysis Report

TC Energy Corporation (TRP) : Free Stock Analysis Report

Calumet, Inc. (CLMT) : Free Stock Analysis Report

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