NOV Inc. reports Q3 EPS 29c, consensus 34c

Reports Q3 revenue $2.19B, consensus $2.13B. “NOV‘s Q3 results saw revenues and margins improve both sequentially and year-over-year, as steadily strengthening international and global offshore markets outpaced softening North American land activity,” stated CEO Clay Williams. “NOV’s capital equipment orders grew five percent sequentially due to rising international and offshore demand. Encouragingly, we are securing improved pricing and margins in new orders, which will help drive better profitability in future periods…We expect the Company’s working capital to begin to normalize, leading to positive free cash flow in Q4. Continuing normalization should position us to deliver improved cash generation in 2024…Today, we announced that, effective January 1, 2024, we will consolidate our operating structure from three reporting segments to two. The simplified structure will allow us to better utilize and share our resources across the organization, accelerate innovation, improve customer service, and deliver better financial results, including helping us achieve our $75M annual cost savings target…I am extremely excited about NOV’s outlook. As the cycle moves out of the early innings, our customers must increase the rate of investment in their asset base. Our market is improving, customers are accelerating their adoption of our technically differentiated products and we are taking actions to improve our cost structure, all of which will drive improve profitability, greater cash flow and higher returns on capital employed.”