National Energy Services Reunited Corp. (NASDAQ:NESR) is gearing up to release its financial results for the third quarter of 2026 on November 9, before the market opens. As an oilfield services provider operating primarily in the Middle East and North Africa (MENA), NESR’s performance is closely watched by investors, particularly in light of recent geopolitical developments in the region.
In the previous quarter, NESR reported earnings per share (EPS) of 44 cents, surpassing the Zacks Consensus Estimate of 35 cents. This positive result was largely driven by the ramp-up of the Jafurah contract, which significantly contributed to earnings growth. Additionally, NESR’s quarterly revenue reached $520.75 million, exceeding the consensus estimate of $458.42 million. Over the last four quarters, NESR has consistently outperformed earnings expectations, with an average surprise of 19.8%1.
For the upcoming third quarter, the Zacks Consensus Estimate projects an EPS of 36 cents, reflecting a 125% improvement from the same period last year. However, there has been one downward revision in the past month. The revenue forecast stands at $497.7 million, indicating a year-over-year increase of 68.5%2.
NESR is a key player in the oilfield services sector in the MENA region, serving both upstream and midstream companies. The company’s performance in the third quarter is expected to be bolstered by the ongoing expansion of the Jafurah unconventional gas project in Saudi Arabia. Furthermore, robust conventional oilfield activities in Oman and Kuwait are anticipated to positively influence NESR’s earnings and overall financial results.
The Jafurah project is particularly significant as it represents one of the largest unconventional gas projects in the region. This project is expected to enhance Saudi Arabia’s gas production capabilities, providing a substantial boost to NESR’s operations. The company’s involvement in such large-scale projects indicates its strong position in the industry and its ability to capitalize on regional energy developments.
Nonetheless, NESR faces challenges due to the ongoing regional conflict, which has led to a slowdown in upstream activities. Geopolitical tensions have also increased freight and logistics costs, potentially impacting the company’s bottom line for the quarter. These factors are crucial considerations for NESR’s third-quarter performance3. The instability in the region can lead to disruptions in operations, affecting the company’s ability to maintain steady production levels and meet its financial targets.
According to the Zacks model, NESR is unlikely to achieve an earnings beat this quarter. The model suggests that a combination of a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) is necessary for a higher likelihood of surpassing earnings expectations. Currently, NESR holds a Zacks Rank #3, with an Earnings ESP of -1.69%4. This ranking reflects the company’s current market position and the challenges it faces in achieving its projected earnings.
In contrast, other energy sector companies such as PBF Energy (NYSE:PBF), HF Sinclair Corporation (NYSE:DINO), and Galp Energia SGPS SA (OTC:GLPEF) are ranked higher by Zacks. PBF Energy, for instance, operates a geographically diverse refining network with six refineries, contributing to its strong market position. The company reported an earnings beat in the third quarter.
HF Sinclair Corporation, a major player in downstream energy, operates across five segments, including refining and renewables. The company benefits from a network of seven complex refineries and has shown a positive earnings surprise in the third quarter, exceeding estimates by 43.8%.
Galp Energia, a Portuguese energy company, has been successful in its exploration and production efforts, particularly with the Mopane discovery in Namibia’s Orange Basin. Despite missing earnings expectations in the third quarter, Galp’s strategic exploration activities position it for future growth. The company’s ability to diversify its operations and explore new markets is a testament to its strategic planning and execution capabilities.
Investors interested in the energy sector can find more insights and recommendations from Zacks Investment Research, which offers reports and analyses on various companies. Their comprehensive analysis provides valuable information for making informed investment decisions in the dynamic energy market.
Footnotes:
- NESR’s earnings surpassed expectations in the previous quarter. Source.
- The projected EPS and revenue for NESR’s third quarter show significant year-over-year growth. Source.
- Geopolitical tensions in the MENA region are affecting NESR’s operations. Source.
- NESR’s current Zacks Rank and Earnings ESP indicate a lower likelihood of an earnings beat. Source.
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