Wall Street closes at a record for the first time since end of January
Investing.com - RBC Capital reiterated a Sector Perform rating and $21.00 price target on NOV Inc. (NYSE:NOV) following the company’s lowered first-quarter guidance.
NOV reduced its first-quarter EBITDA guidance to $177 million from a prior range of $200 million to $225 million. The company attributed the revision to disruptions in the Middle East caused by the Iran War, which resulted in a $54 million revenue impact and a $32 million EBITDA impact during the quarter. The guidance cut comes as 5 analysts have revised their earnings downwards for the upcoming period, according to InvestingPro data, though the stock has still delivered a 65% return over the past year.
The new guidance includes revenue of $2.05 billion and operating profit of $47 million. The disruptions primarily affected end-of-quarter deliveries of capital equipment and products, while results also faced pressure from higher shipping and freight costs and reduced manufacturing cost absorption.
NOV stated that none of its facilities have been damaged and the company is working to mitigate further impacts from the conflict. RBC Capital’s EBITDA estimate had been $207 million, while the Street consensus was $206 million.
NOV is scheduled to report first-quarter 2026 results on April 27 after market close. For deeper insights into NOV’s financial health and comprehensive analysis, investors can access the company’s detailed Pro Research Report, available exclusively on InvestingPro alongside coverage of 1,400+ other US equities.
In other recent news, NOV Inc. has announced that operational disruptions due to the war in the Middle East will lead to first-quarter 2026 revenue and earnings falling below prior guidance. The company expects to report revenues of $2.05 billion, operating profit of $47 million, and Adjusted EBITDA of $177 million for the quarter. RBC Capital has downgraded NOV’s stock rating to Sector Perform from Outperform, citing a less compelling risk/reward opportunity in NOV shares. Additionally, NOV plans to double the capacity of its subsea flexible pipe manufacturing facility in Açu, Brazil, with a $200 million investment over the next three years to meet anticipated demand.
In other developments, Ben A. Guill has resigned from the board of directors of NOV Inc., citing personal commitments, with no disputes or disagreements with the company. NOV also announced a 20% increase in its regular quarterly cash dividend to $0.09 per share, payable on March 27, 2026, to stockholders of record as of March 13, 2026. These recent developments highlight significant operational and strategic changes within the company.
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