NOV Earnings: Favorable Year-End Capital Equipment Demand Drives Higher-Than-Expected Revenue

NOV closed out 2023 on strong footing with fourth-quarter revenue up 7% sequentially and a slightly expanded adjusted EBITDA margin of 12.5%. Profitability fell approximately in line with management guidance, while top-line growth blew past the high end of guidance due to significant outperformance in the completion and production solutions segment and rig technologies segment. Sequential sales growth of the completion and production solutions segment and the rig technologies segment was 6% and 12%, respectively, compared with guidance high ends of 4% and 3%, respectively. We’ll incorporate the firm’s full financial and operating results shortly, but after this first look, we maintain our no-moat rating and $23 fair value estimate.