Yahoo Finance National Oilwell Varco’s Stock Reacts to Earnings Release
National Oilwell Varco: Things Get Slippery Post-4Q15 Earnings
National Oilwell Varco’s share price reaction
National Oilwell Varco released its financial information for fiscal 4Q15 on February 3, 2016. Its stock reacted negatively immediately following the earnings release. That day, it fell to $28, 8.7% down from the previous day’s close. Since the beginning of this year, its share price has fallen by 19%.
Core Laboratories (CLB), NOV’s peer in the oilfield equipment and services industry, released its financial information for fiscal 4Q15 on January 28. CLB’s share price increased ~10% the day following its latest earnings results. Though NOV makes up only 0.7% of the iShares Select Dividend ETF (DVY), for investors seeking exposure to the energy sector, it forms 8.5% of DVY.
Industry comparison
In the year leading up to February 3, National Oilwell Varco’s stock returned a negative 46%. In the past year, NOV has underperformed the Market Vectors Oil Services ETF (OIH), which has returned a negative 33%. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced a negative 26% return. However, NOV has outperformed the US rig count, which returned a negative 60% in the past year.
NOV has also significantly underperformed the SPDR S&P 500 ETF (SPY), which returned a negative 1% during the same period. NOV forms 0.07% of SPY. NOV’s peer Oil States International (OIS) has also outperformed NOV, producing a negative 42% in the past year. To learn why National Oilwell Varco has underperformed the industry, read Market Realist’s article Is National Oilwell Varco Fundamentally Weak due to Downturn? Next, we’ll discuss Wall Street analysts’ targets for National Oilwell Varco.
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