Nabors Industries (NBR) second-quarter earnings of 32 cents per share topped the Zacks Consensus Estimate of 28 cents, buoyed by stronger margins associated with new rig deployments in its international operations and solid performance from the Alaska sub-segment.
However, results were significantly below year-earlier
levels, reflecting a sustained slowdown in North
American activity levels. We remain concerned about
the North American land drilling scene and its impact
on Nabors, the largest onshore driller.
This, coupled
with the company’s relatively weak balance sheet in
an environment of continued credit market turmoil,
accounts for our Underperform recommendation.Zacks Investment Research
