(By Balaseshan) National-Oilwell Varco Inc. (NYSE: NOV), which provides oilfield services and supplies, reported a 16% growth in quarterly earnings on higher revenue across its segments. Results exceeded Street's expectations, sending its shares up 1.66% in premarket.
Earnings for the fourth quarter were $668 million or $1.56 per share, up from $574 million or $1.35 per share in the same period last year.
The latest quarter included $51 million in pre-tax transaction charges and a net $69 million tax benefit related to certain U.S. foreign tax credits. Adjusted earnings grew 9% to $638 million or $1.49 per share for the latest quarter.
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Total revenue jumped 33.5% to $5.69 billion.
Analysts, on average, polled by Thomson Reuters had expected a profit of $1.44 per share on revenue of $5.30 billion for the fourth quarter.
Rig Technology revenue grew 25% to $2.9 billion, while Petroleum Services & Supplies revenue increased 13% to $1.77 billion. Revenue from Distribution & Transmission segment jumped 126% to $1.27 billion.
Gross margin for the fourth quarter decreased to 24.8% from 30.2%.
"As we enter 2013, we recognize that there are some near-term headwinds facing us in the North American land market. However, we are excited to be entering the year with strong financial resources, a solid backlog, a well-constructed and balanced business, and an experienced and capable group," said Pete Miller, Chairman and CEO of National Oilwell Varco.
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NOV closed Thursday's regular session up 0.65% at $74.14. The stock has been trading between $59.07 and $89.95 for the past 52 weeks.