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A month has gone by since the last earnings report for Nov Inc. (NOV). Shares have lost about 2.1% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Nov Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

NOV Inc. Earnings & Revenues Beat Estimates in Q4

NOV Inc. posted fourth-quarter net income of 26 cents per share, which was 3 cents better than the Zacks Consensus Estimate and marked a turnaround from the year-ago loss of 6 cents. The outperformance reflects improving momentum in international markets.

NOV’s total revenues of $2.1 billion surpassed the Zacks Consensus Estimate by 6.5% and rose 36.7% from the year-ago sales of $1.5 billion.

Segment Performances

Rig Technologies: The unit produced $620 million in fourth-quarter revenues, which comfortably went past the Zacks Consensus Estimate of $550 million and also compared favorably with the year-ago quarter’s $431 million. Adjusted EBITDA of $88 million outpaced the Zacks Consensus Estimate of $62 million and more than quadrupled from the fourth-quarter 2021 figure of $21 million. The segment’s results were buoyed by strong aftermarket operations in tandem with the recovery in global supply chains, plus higher capital equipment deliveries.

Wellbore Technologies: NOV’s Wellbore Technologies segment’s revenues of $762 million increased 32.3% year over year in the fourth quarter of 2022 but fell marginally short of the consensus mark (by 0.8%). While the unit’s adjusted EBITDA of $146 million was up 65.9% from the year-earlier quarter’s profit of $88 million, the same missed the Zacks Consensus Estimate of $162 million. The mixed comparisons could be attributed to solid improvements in the international markets, offset by plateauing North America results, the delayed shipments of drill pipe and motors, plus the related cost escalation to speed up client orders.  

Completion & Production Solutions: Compared to a year ago, the segment’s revenues improved 34.4% to $738 million and beat the Zacks Consensus Estimate of $684 million. Moreover, the unit’s adjusted EBITDA of $66 million skyrocketed from the year-ago quarter’s income of $2 million and came well ahead of the consensus mark of $50 million, primarily due to elevated completion equipment demand, improved response to the supply chain-reply issues, better pricing and the segment’s growing backlog of offshore projects.