Valaris falls 10.1% after quarterly earnings miss

What happened

Valaris (VAL) fell 10.1% on November 2, 2026, because of third-quarter results that missed the Zacks consensus estimate. The stock closed at $94.69 after it opened 3.7% below the previous close and traded at 1.4 times its 20-day average. The company reported third-quarter earnings of $0.66 per share, against $1.06 expected, 37.7% below estimates, according to Zacks Investment Research.

How big was the move

The decline was 3.3 times a typical daily move for this stock and was 5.5 percentage points worse than the Energy sector median on the day, which fell 4.5%. Trading volume ran at 1.4 times its 20-day average while the S&P 500 fell 0.5% on the day. Over the last five sessions the stock fell 4.5%, compared with the S&P 500, which fell 1.8% over the same period.

The technical picture

Before the earnings release the stock sat above several key moving averages: 4.3% above its 20-day moving average, 9.3% above its 50-day moving average and 9.7% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had remained above the 200-day average for 12 consecutive trading days. The Relative Strength Index (14 days) stood at 56, in a neutral range.

Momentum had been a strong feature of the share price in recent months. The stock rose 20.8% over one month, rose 21.2% over three months and rose 64.1% over one year, leaving it 53.6 percentage points ahead of the S&P 500 for the one-year period. Volatility was elevated at 49% annualized over 60 days, higher than 66% of its own readings over five years. The stock is 17.0% below its 52-week high.

Fundamentals and valuation

For the four quarters through September 30, 2026, Valaris reported revenue of $2.14 billion, a decline of 11.6% from a year earlier and a decline of 13.2% versus one quarter earlier. Diluted earnings per share for the period were $11.40, a year-over-year increase of 103.2%. Gross margin was 32.0% (a year earlier: 32.5%) and operating margin was 6.3% (a year earlier: 22.9%). Free-cash-flow margin was 9.9% and return on invested capital was 5.5%.

The balance sheet carried net debt of 1.7 times EBITDA, and the share count over one year decreased by 1.0%. The market valued the company at $7.31 billion at the close. On a valuation basis the stock traded at 8.3 times trailing earnings and at 30.0 times expected earnings. Free-cash-flow yield was 2.9%.

PromtFinance scores ranked the stock weak on Value at 44 and weak on Growth at 37, with Quality 16, Momentum 74 and Stability 22. Those scores underscore a contrast investors face: strong recent price momentum but weak fundamentals and quality metrics.

Earnings and analyst expectations

Valaris reported third-quarter earnings of $0.66 per share on November 2, 2026, missing the Zacks consensus estimate of $1.06 and down from $2.65 per share a year earlier, according to Zacks Investment Research. The company had recorded zero consecutive quarters beating estimates, and the typical two-day reaction after recent reports had been that the stock fell 2.8%.

Analysts place a consensus price target of $86.00, which is 9.2% below the closing price. Fifty-four analysts provide ratings on the stock, with 20% of them rating the stock Buy or Strong Buy and the consensus rating listed as Hold. The next scheduled report date in the supplied data was November 4, 2026.

What to watch

• November 4, 2026: next scheduled report date listed in the data.
• Short-term trading volume relative to its 20-day average, which was 1.4 times on November 2, 2026.
• Fleet status reports and operational updates; a fleet status report was released via Business Wire from Hamilton, Bermuda.
• Metrics tied to margins and free cash flow, including operating margin of 6.3% and free-cash-flow margin of 9.9%.
• Valuation spreads: price to trailing earnings at 8.3 times versus price to forward earnings at 30.0 times expected earnings.