Offshore drilling contractor Valaris (NYSE: VAL) will be reporting results this Monday after the bell. Here’s what to look for.
Valaris beat analysts’ revenue expectations last quarter, reporting revenues of $539.2 million, down 12.4% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates. It reported year-on-year other production growth of 18.4%.
Is Valaris a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Valaris’s revenue to decline 3.7% year on year, improving from the 7.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Valaris has a history of exceeding Wall Street’s expectations.
Looking at Valaris’s peers in the oilfield services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ProPetro delivered year-on-year revenue growth of 20.9%, beating analysts’ expectations by 14.1%, and NOV reported revenues up 2.3%, topping estimates by 1.5%. ProPetro traded up 4.1% following the results while NOV was down 6.2%.
Read our full analysis of ProPetro’s results here and NOV’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 6.2% on average over the last month. Valaris is up 35.3% during the same time and is heading into earnings with an average analyst price target of $69 (compared to the current share price of $106.04).
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