And then by National-Oilwell Varco, Inc. (NYSE:NOV) As a member of the oil-field services set, National Oilwell Varco involves significantly different metrics and considerations from those of ExxonMobil and Chevron. Nevertheless, a company with market share to burn in the rapidly expanding world of rig construction, and the manufacture of components for the units, the company is of utmost importance. As a result, it likely will garner substantial attention vis-a-vis its earnings release and post-release call on Friday.
Analysts who follow the company have formed a consensus of $1.44 in per-share earnings for the quarter, or slightly more than 5% above last year’s comparable $1.37. Revenues are expected to come in at about $5.30 billion, or approximately 24% higher than the $4.26 billion recorded in the final quarter of 2011. Of the 30 analysts who have published expectations on Varco, all but five, or 83%, rate the company at least a “Buy.”
There are two other comments that I’ll add as they relate to significant items from the company’s release and conference call. First, Varco has consistently raised its backlog during recent quarters, with most of the business involved targeted for international venues. A continuation of that trend would be meaningful for the company, as will management’s thoughts on the mergers and acquisitions picture.
Second, there are few corporate executives who truly shine at imparting information about industry macro trends as they discuss their companies results. National Oilwell Varco’s CFO Clay Williams is one of the few who does, and so I’d urge Fools to be attentive to his comments during the company’s conference call.
A Foolish takeaway
There will, of course, be a variety of energy companies primed to report their quarterly results after Friday. For instance, one of my favorites, EOG Resources, Inc. (NYSE:EOG) , will report in about two weeks. The importance of Friday, however, is that on no other day in the current earnings season will it be as possible for Fools to garner such a wide array of information on energy trends.
National Oilwell Varco, which is key to this article, is perhaps the safest investment in the energy sector, due to its industry-leading 60% market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs, as well as updating an aging fleet of offshore rigs. To help determine if NOV is a nice fit for your portfolio, check out our premium research report with in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor’s resource, simply click here now and claim your copy today.
The article Friday’s Featured Energy Show originally appeared on Fool.com and is written by David Lee Smith.
Fool contributor David Lee Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron and National Oilwell Varco.
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