NOV Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - NOV Inc. reported second-quarter 2024 adjusted earnings of 57 cents per share, exceeding the Zacks Consensus Estimate of 35 cents and up from 39 cents in the previous year, driven by improved execution, customer demand, and pricing [1] - Total revenues reached $2.2 billion, surpassing the Zacks Consensus Estimate by 1.5% and increasing 5.9% from $2.1 billion in the prior year [1] - The company repurchased 2 million shares at an average price of $18.5 and increased its base dividend by 50%, alongside a net credit of $118 million from divesting its Pole Products business [1] Financial Performance - Energy Products and Services segment reported revenues of $1.1 billion, missing projections but exceeding the prior year's $1 billion, attributed to strong international and offshore demand [3] - Adjusted EBITDA for this segment was $184 million, slightly below the estimate of $185.7 million and down from $198 million year-over-year due to decreased North American activity [3] - Energy Equipment segment revenues increased 7.8% year-over-year to $1.2 billion, beating projections, with adjusted EBITDA rising to $142 million from $99 million in the previous year [4] Order Backlog and Capital - Energy Equipment segment saw new orders of $977 million, a $466 million increase year-over-year, resulting in a book-to-bill ratio of 177% [4] - As of June 30, 2024, the backlog for Energy Equipment capital orders was $4.3 billion, reflecting a $472 million increase from the previous year [4] - The company had cash and cash equivalents of $827 million and long-term debt of $1.7 billion, with a debt-to-capitalization ratio of 21.1% [5] Future Outlook - For the third quarter, management projects consolidated revenues to be flat or increase by a low single-digit percentage year-over-year, with adjusted EBITDA expected between $270 million and $305 million [6] - Full-year 2024 revenue growth is estimated in the low to mid-single digits, with adjusted EBITDA between $1.10 billion and $1.18 billion, and capital expenditures projected at $330 million [6] - The company plans to return at least 50% of excess free cash flow to shareholders through dividends and stock buybacks [7]