Skip to Content
Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


NOV Posts Solid Improvement in Q2 Results, Driven by Higher Industry Activity

Preston Caldwell Senior Analyst

Analyst Note

| Preston Caldwell |

NOV’s second-quarter results evinced solid improvement in the company's prospects, though not to the degree the headline numbers suggest. While revenue was up 13% sequentially, and adjusted operating margins jumped to 2% from negative 6% in the prior quarter, this was boosted by a temporary windfall from a settlement on a rig cancellation (which affected the rig technologies segment). Excluding the settlement contribution, revenue was up 8% sequentially, and adjusted operating margins improved to negative 2%. North America revenue surged 22% on the back of industrywide activity improvement, and international revenue was about flat. Our fair value estimate and no-moat rating are unchanged following the results.

Read Full Analysis

Company Profile

Business Description

NOV Inc is a leading supplier of oil and gas drilling rig equipment and products, such as downhole tools, drill pipe, and well casing. The company operates on a global scale, with more than a thousand locations in six continents.

7909 Parkwood Circle Drive
Houston, TX, 77036-6565
T +1 713 346-7500
Sector Energy
Industry Oil & Gas Equipment & Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 27,631