The Zacks Oil and Gas - Drilling industry is weighed down by uncertainty and volatility. Customers are pulling back on spending as shifting oil prices, geopolitical risks and trade tensions cloud visibility. Contracting activity has slowed, and while projects are still in play, many operators are deferring work to protect balance sheets. At the same time, oversupply risk persists, with idle rigs and softer day rates threatening margins if activity fails to pick up. Yet, the longer-term story isn’t all bleak ...

It has been about a month since the last earnings report for Transocean (RIG) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Transocean due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Transocean Ltd. before we dive into how investors and analysts have reacte ...

Group 1: Earnings Performance - Helmerich & Payne reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.92 per share a year ago, representing an earnings surprise of +10.00% [1] - The company posted revenues of $1.04 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.17%, compared to revenues of $697.72 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Helmerich & Payne shares have declined approximately 51.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $968.96 million, and for the current fiscal year, it is $1.10 on revenues of $3.66 billion [7] Group 3: Industry Context - The Oil and Gas - Drilling industry, to which Helmerich & Payne belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Viewpoint - Valaris Limited reported quarterly earnings of $1.61 per share, exceeding the Zacks Consensus Estimate of $1.16 per share, but down from $2.03 per share a year ago, indicating a significant earnings surprise of +38.79% [1][2] Financial Performance - The company achieved revenues of $615.2 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.41% and showing a slight increase from $610.1 million year-over-year [2] - Over the last four quarters, Valaris has surpassed consensus EPS estimates two times and topped revenue estimates four times [2] Stock Performance - Valaris shares have increased approximately 15.2% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.00 on revenues of $559.74 million, and for the current fiscal year, it is $2.65 on revenues of $2.21 billion [7] - The estimate revisions trend for Valaris was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Drilling industry, to which Valaris belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Valaris's stock performance [5]

Core Viewpoint - Precision Drilling reported quarterly earnings of $0.77 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.02 per share, although this is a decrease from $1.05 per share a year ago, indicating a substantial earnings surprise of +3,950.00% [1] Group 1: Earnings and Revenue Performance - The company posted revenues of $293.87 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.15%, but down from $313.7 million year-over-year [2] - Over the last four quarters, Precision Drilling has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - Precision Drilling shares have declined approximately 12.7% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $1.00 for the coming quarter and $3.89 for the current fiscal year [7] Group 3: Industry Context - The Oil and Gas - Drilling industry is currently ranked in the bottom 5% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Company Overview - Valaris Limited (VAL) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended June 2025, with a consensus outlook indicating a significant impact on its near-term stock price [1][2] - The upcoming earnings report is scheduled for release on July 31, and the stock may experience upward movement if the reported figures exceed expectations, while a miss could lead to a decline [2] Earnings Estimates - The Zacks Consensus Estimate projects quarterly earnings of $1.16 per share, reflecting a year-over-year decrease of 42.9%, with revenues expected to be $578.14 million, down 5.2% from the previous year [3] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst assessments during this period [4] Earnings Surprise Prediction - The Most Accurate Estimate for Valaris is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +6.03%, suggesting a bullish outlook from analysts [11] - Valaris holds a Zacks Rank of 3, indicating a neutral position, but the combination of a positive Earnings ESP suggests a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, Valaris was expected to post earnings of $1.1 per share but instead reported a loss of -$0.53, resulting in a surprise of -148.18% [12] - Over the past four quarters, Valaris has beaten consensus EPS estimates twice, indicating some potential for positive performance [13] Industry Context - In comparison, Nabors Industries (NBR), another player in the Oil and Gas - Drilling industry, is expected to report a loss of $2.05 per share for the same quarter, reflecting a year-over-year change of +52.2% [17] - Nabors has an Earnings ESP of -2.6% and a Zacks Rank of 5 (Strong Sell), making it challenging to predict a beat on the consensus EPS estimate [18]

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 ...

分组1 - Valaris Limited reported a quarterly loss of $0.53 per share, significantly missing the Zacks Consensus Estimate of $1.10, and compared to earnings of $0.35 per share a year ago, representing an earnings surprise of -148.18% [1] - The company posted revenues of $620.7 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 8.03%, and up from $525 million in the same quarter last year [2] - Valaris shares have declined approximately 24.4% since the beginning of the year, while the S&P 500 has decreased by -5.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.15 on revenues of $576.44 million, and for the current fiscal year, it is $3.66 on revenues of $2.2 billion [7] - The Oil and Gas - Drilling industry, to which Valaris belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8]