Capital One Financial Weighs in on Valaris FY2026 Earnings

Key Points

• Capital One Financial has revised down its FY2026 earnings per share estimate for Valaris to $3.22, indicating a decline from the previous estimate of $3.34, while maintaining a "Hold" rating on the stock.
• Valaris reported strong quarterly earnings of $1.61 per share, exceeding expectations of $1.16, with revenue of $615.20 million, which also beat analyst predictions.
• Barclays and Citigroup have increased their price targets for Valaris, with Barclays setting a target of $39.00 and Citigroup raising it to $55.00, reflecting a generally positive outlook despite varying ratings from other analysts.

Valaris Limited (NYSE:VAL - Free Report) - Equities research analysts at Capital One Financial cut their FY2026 earnings per share estimates for shares of Valaris in a research report issued to clients and investors on Monday, October 20th. Capital One Financial analyst D. Becker now anticipates that the company will post earnings of $3.22 per share for the year, down from their previous forecast of $3.34. Capital One Financial has a "Hold" rating on the stock. The consensus estimate for Valaris' current full-year earnings is $3.96 per share. Capital One Financial also issued estimates for Valaris' Q1 2027 earnings at $1.33 EPS, Q2 2027 earnings at $1.47 EPS, Q3 2027 earnings at $2.05 EPS and FY2027 earnings at $6.73 EPS.

Valaris (NYSE:VAL - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.45. The business had revenue of $615.20 million for the quarter, compared to analysts' expectations of $582.70 million. Valaris had a net margin of 11.18% and a return on equity of 12.36%. The business's quarterly revenue was up .8% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.03 earnings per share.

A number of other research firms have also issued reports on VAL. BTIG Research reiterated a "buy" rating on shares of Valaris in a report on Monday, July 14th. Fearnley Fonds cut Valaris from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 30th. Barclays increased their price target on shares of Valaris from $37.00 to $39.00 and gave the company an "equal weight" rating in a research note on Thursday, July 10th. SEB Equity Research set a $45.50 price objective on Valaris in a report on Monday, September 1st. Finally, Citigroup raised their price target on Valaris from $50.00 to $55.00 and gave the stock a "neutral" rating in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $48.69.

Valaris Price Performance

Valaris stock opened at $48.93 on Tuesday. The company's 50 day moving average is $49.62 and its two-hundred day moving average is $43.92. The firm has a market cap of $3.48 billion, a PE ratio of 12.74 and a beta of 1.15. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.46. Valaris has a 52-week low of $27.15 and a 52-week high of $53.98.

Hedge Funds Weigh In On Valaris

Several large investors have recently added to or reduced their stakes in the business. Schf GPE LLC purchased a new stake in shares of Valaris in the second quarter worth about $77,675,000. Dalal Street LLC acquired a new stake in Valaris during the first quarter worth about $56,046,000. Tensile Capital Management LP bought a new position in Valaris during the 1st quarter worth $25,912,000. American Century Companies Inc. increased its holdings in shares of Valaris by 491.1% in the 2nd quarter. American Century Companies Inc. now owns 681,067 shares of the company's stock worth $28,680,000 after acquiring an additional 565,856 shares during the period. Finally, Moerus Capital Management LLC acquired a new stake in Valaris in the 1st quarter valued at approximately $18,314,000. 96.74% of the stock is currently owned by hedge funds and other institutional investors.

Valaris Company Profile

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs.

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