Offshore drilling contractor Valaris (NYSE: VAL) will be reporting earnings this Monday afternoon. Here’s what to look for.
Valaris beat analysts’ revenue expectations last quarter, reporting revenues of $537.4 million, down 8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
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 29% year on year, a reversal from the 18.2% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Noble Corporation’s revenues decreased 10.2% year on year, beating analysts’ expectations by 6.8%, and World Kinect reported revenues up 2.5%, topping estimates by 10.4%. Noble Corporation traded up 8.2% following the results while World Kinect was also up 10.9%.
Read our full analysis of Noble Corporation’s results here and World Kinect’s results here.
There has been positive sentiment among investors in the oilfield services segment, with share prices up 4.1% on average over the last month. Valaris is up 4.2% during the same time and is heading into earnings with an average analyst price target of $70.68 (compared to the current share price of $101.50).
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