Valaris (NYSE:VAL) Releases Earnings Results, Misses Expectations By $0.40 EPS

Key Points

• Valaris reported quarterly EPS of $0.66, falling $0.40 short of analysts’ $1.06 consensus estimate and declining from $2.65 a year earlier. Revenue reached $593.6 million, exceeding the $562.7 million forecast.
• The stock dropped 10.2% to $94.53 following the results. Valaris has a $6.56 billion market capitalization, a 7.06 price-to-earnings ratio and traded near the upper end of its 52-week range.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and one rates it Sell, producing a consensus “Reduce” rating and a $68.50 average price target.

Valaris (NYSE:VAL - Get Free Report) released its quarterly earnings results on Monday. The company reported $0.66 earnings per share for the quarter, missing analysts' consensus estimates of $1.06 by ($0.40), RTT News reports. Valaris had a net margin of 43.95% and a return on equity of 9.25%. The firm had revenue of $593.60 million during the quarter, compared to the consensus estimate of $562.70 million. During the same quarter in the prior year, the business posted $2.65 earnings per share.

Valaris Stock Down 10.2%

NYSE VAL traded down $10.79 during trading on Monday, hitting $94.53. The company's stock had a trading volume of 1,129,098 shares, compared to its average volume of 1,172,582. Valaris has a fifty-two week low of $48.08 and a fifty-two week high of $114.12. The company has a market cap of $6.56 billion, a PE ratio of 7.06 and a beta of 1.03. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.55 and a quick ratio of 1.55. The business's 50 day simple moving average is $86.57 and its 200-day simple moving average is $85.67.

Analyst Upgrades and Downgrades

A number of research firms recently commented on VAL. Susquehanna increased their target price on shares of Valaris from $80.00 to $86.00 and gave the company a "neutral" rating in a research report on Monday, October 5th. Weiss Ratings upgraded shares of Valaris from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 17th. Finally, Wall Street Zen downgraded Valaris from a "hold" rating to a "sell" rating in a research report on Saturday. Six analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Valaris has a consensus rating of "Reduce" and a consensus price target of $68.50.

About Valaris

Valaris plc is an offshore contract drilling company that provides drilling services to oil and gas operators worldwide. The company works with customers to support offshore exploration, appraisal and development programs in shallow-water and deepwater environments.

Valaris operates a fleet that includes drillships, semisubmersible rigs and jackup rigs. Its services include mobile offshore drilling, well construction support and related rig-management and operational services. The company's fleet is designed to serve a range of offshore projects, from conventional shelf developments to technically demanding deepwater wells.

With operations spanning major offshore energy regions, Valaris has served customers in areas including the Gulf of Mexico, the North Sea, Brazil, West Africa, the Middle East and the Asia-Pacific region.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.