National Oilwell Varco Inc. (NOV, $36.85) to Report Its Q3 Results – What to Expect?

Houston, TX-based National Oilwell Varco Inc. is one of the global leaders in designing, manufacturing and selling of comprehensive systems, components, products and equipment used in oil and gas drilling and production worldwide.

After struggling through a difficult oil market downturn, the company in Q2 2018 not only posted positive numbers but also surpassed a majority of the analyst’s estimates quite comprehensively, thanks to the sustained progress in the oil market.

So as the company is about to publish its Q3 results, the investor community expects its performance to improve further, given the positive outlook given by the CFO in the previous quarterly call.

Here are three things to look for:

1) Look for rig technologies to lose some luster, largely owing to conversion of inventory into cash that has been slow to move during this prolonged downturn period (and also because of the industry hovering near its cyclical lows).

2) Look for wellbore technologies to maintain momentum largely owing to the new orders coming in thanks to improvement in the international oil markets. Improving oil prices has helped bring back the infrastructure investments in the industry.

3) Look for the completion and production solutions segment to improve further thanks to sustained improvement in the capital equipment market.