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Dec 31, 2021
NOV Q4 2021 Earnings Report
Reported fourth quarter and full year 2021 results with revenue increase across all segments.
Key Takeaways
NOV Inc. reported Q4 2021 revenues of $1.52 billion, a 13% increase compared to the previous quarter and a 14% increase compared to Q4 2020. The net loss for the quarter was $40 million, which included $11 million in pre-tax charges related to COVID-19 and $9 million of other items. Adjusted EBITDA increased sequentially to $69 million, representing 4.5% of sales.
Double-digit sequential revenue growth was achieved in all three operating segments due to improving oil, gas, and offshore wind power activity.
Newly-placed orders exceeded shipments out of backlog due to solid customer demand in response to higher energy prices.
The emergence of the Omicron variant and supply chain disruptions increased freight, manufacturing labor, and component costs, affecting incremental margin flow-through.
The company is focused on improving margins through higher product pricing, growing revenue from proprietary technologies, and better execution against ongoing supply chain challenges.
Revenue by Segment
Forward Guidance
NOV is focused on improving margins through a combination of higher product pricing, growing revenue from NOV’s proprietary technologies, and better execution against ongoing supply chain challenges.
Positive Outlook
- Higher product pricing
- Growing revenue from NOV’s proprietary technologies
- Better execution against ongoing supply chain challenges
- Strong financial position
- Global reach
Challenges Ahead
- Emergence of the Omicron variant of COVID-19
- Persistent and increasing supply chain disruptions
- Increased freight costs
- Increased manufacturing labor costs
- Increased component costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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