NOV 2025 Q1 Earnings Misses Targets as Net Income Falls 38.8%

NOV(NOV) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. The company missed expectations with both revenue and earnings declining. The total revenue decreased by 2.4% to $2.10 billion compared to the previous year. In terms of guidance, NOV expects flat to slightly higher revenue for the upcoming quarter, with adjusted EPS anticipated to rise over 35% year-over-year. The company maintains a cautious outlook amidst potential macroeconomic challenges.

Revenue

Revenue for the first quarter of 2025 saw a decline, with the Energy Products and Services segment generating $992 million. Meanwhile, the Energy Equipment segment contributed $1.15 billion. The consolidated total was offset by eliminations amounting to negative $35 million, resulting in a total revenue of $2.10 billion.

Earnings/Net Income

NOV's EPS fell to $0.19 in 2025 Q1 from $0.30 in 2024 Q1, marking a decrease of 36.7%. The net income also dropped to $74 million, down 38.8% from the previous year's $121 million. The significant decline in EPS reflects a challenging quarter for NOV.

Price Action

The stock price of NOV has dropped 6.83% during the latest trading day, has edged down 1.32% during the most recent full trading week, and has plummeted 21.47% month-to-date.

Post-Earnings Price Action Review

After NOV released its latest earnings report, the stock saw a varied performance in the market. Historically, NOV has shown modest returns following earnings announcements. On the day after earnings, the stock often experiences short-term momentum, with a 3-day win rate of 30%. However, over a longer period, the performance becomes less predictable, with a 10-day win rate of 50% and a 30-day win rate of 35%. The average returns were 0.53% for 3 days, 2.58% for 10 days, and 1.64% for 30 days, suggesting that while there are opportunities for gains, they are not consistently strong. The highest return observed was 6.96% over 30 days, indicating potential volatility. Overall, investors should approach NOV's post-earnings stock movements with caution, as returns tend to be modest and variable over time.

CEO Commentary

David Fisher, Chief Executive Officer, expressed optimism regarding Enova's performance, stating, "we once again delivered strong results that met or exceeded our expectations," driven by healthy demand and stable credit. He highlighted the company’s diversified online-only business model as a critical factor for success, emphasizing the importance of "our flexible online-only business model, well diversified portfolio, world-class technology, proprietary analytics." Fisher noted that despite potential macroeconomic challenges, "we remain confident in Enova's future and our ability to navigate a wide range of operating environments," reinforcing the company’s resilience and commitment to sustainable growth.

Guidance

For the second quarter of 2025, Enova expects total company revenue to be flat to slightly higher sequentially, resulting in year-over-year revenue growth of around 20%. The company anticipates adjusted EPS for the second quarter to be slightly higher sequentially and over 35% higher compared to the second quarter of 2024. For the full year, Enova expects originations growth of at least 15%, with revenue growth slightly faster than originations and adjusted EPS growth of at least 25%.

Additional News

In recent weeks, NOV has not announced any major mergers or acquisitions, nor have there been significant changes in its executive leadership. The company has not issued any updates on dividend policies or share buyback programs. As NOV continues to navigate through a challenging financial landscape, investors are closely watching for any strategic moves or announcements that could impact the company's future performance. The focus remains on operational efficiency and market adaptability as key drivers for sustained growth.