NOV lowers Q4 revenue view to $1.33B, consensus $1.36B

NOV announced that it expects Q4 revenue and earnings to be below prior guidance. On a consolidated basis, the Company expects to report revenues of $1.33B, a GAAP operating loss of $327 M and Adjusted EBITDA of $17M. "While rising North American activity levels drove higher revenues in the U.S. for our shorter-cycle businesses, international markets and demand for capital equipment remained soft through year-end, which led to fourth quarter results that were below our expectations for our three segments," commented Clay Williams, Chairman, President, and CEO. "The resurgence of COVID-19 caused customers to defer orders and resulted in a slower pace of bookings in the second half of the quarter; however, we still achieved a sequential increase in orders of 27% for our Completion & Production Solutions segment and a 105% book-to-bill for our Rig Technologies segment. Despite the challenging operating environment for our later-cycle business and our ongoing investments in developing new products and technologies, free cash flow remained healthy and in-line with prior guidance. While we expect continued softness in our Q1 results, we are optimistic that improving commodity prices, rising activity, and the actions we are taking to position NOV for the future will result in improved profitability over the course of 2021."