UPDATE 2-Driller Nabors 4th-qtr profit falls 7 percent

(Adds analyst comment, details, Wall Street estimate, byline)

By Anna Driver

HOUSTON, Feb 5 (Reuters) - Nabors Industries Ltd (NBR.N: Quote, Profile, Research), the world's largest onshore drilling contractor, said on Tuesday its fourth-quarter profit declined 7 percent, hampered by weakness in its North American market.

Nabors results have been hit by a sharp decline in drilling in Canada, while its U.S. market has been hampered by overcapacity and other issues, the company said.

Net profit in the quarter for the Hamilton, Bermuda company was $222 million, or 78 cents per diluted share, compared with $238 million, or 84 cents per diluted share, a year earlier.

Wall Street analysts, on average, had expected a profit of 72 cents a share, according to Reuters Estimates.

Nabors topped Wall Street views, largely due a lower-than-expected Canadian tax rate, analysts said.

"When you break it down, it's not much of a beat," Phil Weiss, an analyst with Argus Research, said, adding that a lower share count also helped boost the per share figure.