Valaris Limited (VAL) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 31, might help the stock move higher if these key numbers are better than expectatio ...

Core Insights - Patterson-UTI reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -50.00% [1] - The company generated revenues of $1.22 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.02%, but down from $1.35 billion year-over-year [2] - The stock has underperformed, losing approximately 29.1% since the beginning of the year, while the S&P 500 has gained 7.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $1.18 billion, and for the current fiscal year, it is -$0.20 on revenues of $4.78 billion [7] - The estimate revisions trend for Patterson-UTI was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Drilling industry, to which Patterson-UTI belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting a challenging environment [8] - Another company in the same industry, Nabors Industries, is expected to report a quarterly loss of $2.05 per share, with a significant downward revision of the consensus EPS estimate by 67.7% over the last 30 days [9]

Industry Overview - The Zacks Oil and Gas - Drilling industry includes companies providing rigs and services for oil and natural gas exploration and development, with operations both onshore and offshore [2] - Drilling for hydrocarbons is capital-intensive and technically challenging, primarily influenced by contracting activity rather than oil or gas prices [2] - Offshore drilling companies exhibit higher volatility compared to onshore counterparts, with their share prices more closely correlated to oil and gas prices [2] Current Challenges - The industry is facing significant challenges due to contracting delays, soft gas prices, and macroeconomic uncertainty, leading to a Zacks Industry Rank of 235, placing it in the bottom 4% of 245 Zacks industries [1][7] - Earnings estimates for the industry have declined sharply, with a drop of 85.2% for 2025 and 51.7% for 2026 over the past year, indicating a negative outlook [9] - The industry has underperformed compared to the broader Zacks Oil - Energy sector and the S&P 500, with a decline of 38.6% over the past year versus a 2.1% increase in the sector and a 9.1% gain in the S&P 500 [11] Market Trends - Macroeconomic uncertainty is causing hesitation in customer decision-making, slowing the pace of tenders and contract awards, and making near-term earnings visibility difficult for drillers [3] - There are concerns about premature rig reactivation leading to oversupply, particularly in deepwater segments, which could undermine pricing power and margins [4] - Despite short-term challenges, long-term demand for deepwater drilling is expected to grow, with forecasts indicating a 40% increase in investment by 2030, supported by large undeveloped reserves and major project approvals [5] Company Highlights - **Transocean Ltd. (RIG)**: Reported contract drilling revenues of $906 million in Q1 2025, an 18.7% increase year-over-year, with a market capitalization of $2.9 billion and a projected earnings growth of 123.1% for 2025 [18] - **Patterson-UTI Energy (PTEN)**: Generated $51 million in adjusted free cash flow in Q1 2025, with a market capitalization of $2.5 billion and a dividend yield of nearly 5% [21] - **Precision Drilling Corporation (PDS)**: Canada’s largest drilling rig contractor, with a market capitalization of $687.3 million, has seen its earnings estimate for 2025 increase from $3.84 to $4.13 per share in the past 60 days [24]

Helmerich & Payne (HP) came out with quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -96.92%. A quarter ago, it was expected that this oil and gas well-drilling contractor would post earnings of $0.69 per share when it actually produced earnings of $0.71, delivering a surprise of 2.90%.Over the las ...

Valaris Limited (VAL) came out with a quarterly loss of $0.53 per share versus the Zacks Consensus Estimate of $1.10. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -148.18%. A quarter ago, it was expected that this company would post earnings of $1.23 per share when it actually produced earnings of $1.88, delivering a surprise of 52.85%.Over the last four quarters, the company has surpassed ...

Core Viewpoint - Noble Corporation PLC reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.31 per share, and down from $0.45 per share a year ago, indicating an earnings surprise of -16.13% [1] - The company posted revenues of $874.49 million for the quarter, surpassing the Zacks Consensus Estimate by 2.41%, and up from $637.08 million year-over-year [2] Earnings Performance - Over the last four quarters, Noble Corporation has surpassed consensus EPS estimates only once [2] - The company had an earnings surprise of -5.08% in the previous quarter, with actual earnings of $0.56 per share against an expected $0.59 [1][2] Stock Performance - Noble Corporation shares have declined approximately 33.1% since the beginning of the year, compared to a decline of -6.1% for the S&P 500 [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $871.35 million, and for the current fiscal year, it is $1.29 on revenues of $3.39 billion [7] - The outlook for the Oil and Gas - Drilling industry is unfavorable, currently ranking in the bottom 13% of over 250 Zacks industries, which may impact Noble Corporation's stock performance [8]

Core Viewpoint - Transocean reported a quarterly loss of $0.10 per share, which was better than the Zacks Consensus Estimate of a loss of $0.12, indicating a 16.67% earnings surprise [1] Group 1: Financial Performance - The company posted revenues of $906 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.28%, compared to $767 million in the same quarter last year [2] - Over the last four quarters, Transocean has exceeded consensus EPS estimates two times and topped revenue estimates twice [2] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $963.5 million, and for the current fiscal year, it is $0.06 on revenues of $3.86 billion [7] Group 2: Stock Performance - Transocean shares have declined approximately 37.9% since the beginning of the year, contrasting with the S&P 500's decline of 6.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Group 3: Industry Outlook - The Oil and Gas - Drilling industry, to which Transocean belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Performance - Patterson-UTI reported break-even quarterly earnings per share, compared to a Zacks Consensus Estimate of a loss of $0.04, and earnings of $0.15 per share a year ago, indicating an earnings surprise of 100% [1] - The company posted revenues of $1.28 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.67%, but down from $1.51 billion year-over-year [2] - Over the last four quarters, Patterson-UTI has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - Patterson-UTI shares have lost about 28.8% since the beginning of the year, while the S&P 500 has declined by 10.1% [3] - The current consensus EPS estimate for the coming quarter is -$0.03 on $1.23 billion in revenues, and -$0.09 on $4.83 billion in revenues for the current fiscal year [7] Industry Outlook - The Oil and Gas - Drilling industry, to which Patterson-UTI belongs, is currently in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Patterson-UTI's stock performance [5][6] Future Expectations - The estimate revisions trend for Patterson-UTI is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - The upcoming earnings call will be crucial for understanding management's commentary on future earnings expectations [3][4] Competitor Insights - Noble Corporation PLC, another company in the same industry, is expected to report quarterly earnings of $0.31 per share, reflecting a year-over-year change of -31.1%, with revenues expected to be $853.91 million, up 34% from the year-ago quarter [9][10]

Core Viewpoint - Precision Drilling reported quarterly earnings of $1.53 per share, missing the Zacks Consensus Estimate of $1.57 per share, and down from $1.88 per share a year ago, indicating a negative earnings surprise of -2.55% [1][2] Financial Performance - The company posted revenues of $345.72 million for the quarter, missing the Zacks Consensus Estimate by 0.85%, and down from $391.51 million year-over-year [2] - Over the last four quarters, Precision Drilling has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance - Precision Drilling shares have declined approximately 29.6% since the beginning of the year, compared to a decline of -10.1% for the S&P 500 [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $293.72 million, and for the current fiscal year, it is $5.13 on revenues of $1.34 billion [7] - The estimate revisions trend for Precision Drilling has been unfavorable ahead of the earnings release [6] Industry Context - The Oil and Gas - Drilling industry is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8]

Core Viewpoint - Transocean is anticipated to report a year-over-year decline in earnings despite an increase in revenues, with the upcoming earnings report being crucial for stock price movement [1][2]. Financial Expectations - The earnings report is expected on April 28, 2025, with a consensus estimate of a quarterly loss of $0.12 per share, reflecting a year-over-year change of -300% [3][12]. - Revenues are projected to be $885.84 million, which is a 15.5% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 40% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - Transocean's Earnings ESP is currently at -8.70%, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [7][8]. - Transocean's combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict an earnings beat [11][16]. Historical Performance - In the last reported quarter, Transocean was expected to post earnings of $0.01 per share but instead reported a loss of $0.09, resulting in a surprise of -1,000% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Industry Comparison - Patterson-UTI, another player in the oil and gas drilling sector, is expected to report earnings of $0.04 per share, reflecting a year-over-year change of -126.7%, with revenues expected to decline by 21.3% to $1.19 billion [17]. - Patterson-UTI's consensus EPS estimate has been revised down by 18.8% in the last 30 days, but it currently has an Earnings ESP of 25.00%, indicating a likelihood of beating the consensus EPS estimate [18].