Nabors Industries (NBR) second-quarter earnings of $0.32 per share topped the Zacks Consensus Estimate of $0.28 buoyed by stronger margins associated with new rig deployments in its international operations and solid performance from the Alaska sub-segment.

However, results were significantly below year-earlier levels, reflecting a sustained slowdown in North American activity levels.

We remain concerned about the North American land drilling scene and its impact on Nabors, the largest onshore driller. This, coupled with the company s relatively weak balance sheet in an environment of continued credit market turmoil, accounts for our Underperform recommendation.Zacks Investment Research

For Immediate Release

Chicago, IL – August 25, 2009 – Zacks Equity Research highlights Transcept Pharmaceuticals (TSPT) as the Bull of the Day and Nabors Industries (NBR) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Guaranty Financial Group Inc. (GFG), Banco Bilbao Vizcaya Argentaria (BBVA) and BB&T Corporation (BBT).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

We recently initiated coverage of Transcept Pharmaceuticals (TSPT) with an Outperform rating and $12 price target. We think Intermezzo is a product that can fill a much needed void for insomnia patients with chronic nocturnal awakenings.

An FDA decision on the pending new drug application is expected in late October 2009. We think approval is a high likelihood event at that time.

With the commercialization

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Nabors Industries (NBR) second-quarter earnings of 32 cents per share topped the Zacks Consensus Estimate of 28 cents, buoyed by stronger margins associated with new rig deployments in its international operations and solid performance from the Alaska sub-segment.

However, results were significantly below year-earlier levels, reflecting a sustained slowdown in North American activity levels. We remain concerned about the North American land drilling scene and its impact on Nabors, the largest onshore driller.

This, coupled with the company's relatively weak balance sheet in an environment of continued credit market turmoil, accounts for our Underperform recommendation.Zacks Investment Research

Our Underperform recommendation for Nabors Industries (NBR) reflects our bearish view of the North American land-drilling scene, which accounts for more than two-thirds of the company’s total contract drilling earnings. The drop-off in drilling activities in response to the combination of commodity-price weakness and credit market tightness is weighing on the fortunes of all oilfield service players in general and land drillers (such as Nabors) in particular. The company did manage to post better-than-expected second-quarter earnings (topping the Zacks Consensus Estimate by 4 cents) on the back of stronger margins associated with new rig deployments in its international operations and solid performance from the Alaska sub-segment. However, results were significantly below year-earlier levels, reflecting a sustained slowdown in North American activity levels. We remain concerned about the North American land-drilling scene and its impact on Nabors, the largest onshore driller. This, coupled with the company’s relatively ...

Yesterday, Nabors Industries Ltd. (NBR) – North America's largest onshore oil and natural gas driller – reported second-quarter results. Recurring earnings per diluted share, excluding non-cash items, came in at $0.32, marginally better than our estimate of $0.31 and well above market expectations of $0.26. The Bermuda-based company’s outperformance was driven by strengthened margins associated with new rig deployments in its international operations and solid results from the Alaska sub-segment.  However, on a year-over-year basis, Nabors’ adjusted earnings per share declined 46.7% (from $0.60 to $0.32) due to weakness in its North American gas-centric businesses combined with less robust international results, particularly in Latin America. Revenue was down 32.6% to $878 million as sales declined in almost all of the company’s segments.  Nabors’ main operating segment is ‘Contract Drilling’, which accounts for bulk of the company’s revenues and operating earnings. Its operations are spread across 6 ...