GO
Loading...

Enter multiple symbols separated by commas

Nabors Shares Slide on Profit Warning

Nabors Industries warned its fourth-quarter earnings would fall short of Wall Street estimates as weakening gas prices cooled demand for its drilling rigs.

Symbol
Price
 
Change
%Change
NBR
---

The world's largest land-based oil and gas driller now sees earnings at 95 cents to $1 a share. Analysts, on average, were expecting earnings of $1.11 before one-time items, according to Reuters Estimates.

Nabors expects 2006 earnings to be between $3.53 and $3.58 a share. Analysts, on average, look for $3.70.

Nabors Chief Executive Gene Isenberg said in a statement that a lower level of activity in the company's North American gas markets were the primary factor behind its lowered forecast.

He said a portion of the shortfall is also due to equipment problems in the lower 48 states and weather-related start-up delays in Canada.

In October, Nabors forecast potential softening in the U.S. gas markets as it announced a slightly better-than-expected third-quarter profit.

High gas inventory levels pushed prices to four-year lows in October, prompting some producers to curtail drilling operations in Western Canada and parts of the United States.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Lottery ticket

    A thief who broke into the car of a Seattle couple left behind a million-dollar lottery ticket, NBC News reports.

  • The Lamborghini SpA Urus SUV.

    There's no shortage of luxury vehicle choices, but increasingly the wealthy are opting for high-end SUVs instead of traditional models.

  • Mike Trout #27 of the Los Angeles Angels takes a picture with fans before a game with Boston Red Sox at Fenway Park on May 23, 2015 in Boston, Massachusetts.

    MLB is using digital media initiatives like Snapchat and Web video to connect with younger viewers. Is it enough?

U.S. Video

  • More upside for bank stocks?

    Is the real bank rally just getting started? Rich Ross of Evercore ISI and Andrew Burkly of Oppenheimer discuss with Brian Sullivan.

  • Gamestop beats on top, bottom line

    Gamestop is reporting EPS beat of $0.68 on revenue beat of $2.06 billion, with CNBC's Kate Rodgers and the "Closing Bell" panel.

  • Truth about buybacks

    RBC's Jonathan Golub and Oppenheimer's Andrew Burkly talk corporate share repurchases with Brian Sullivan.