Noble Energy Misses Expectations

With a rise in net income, Noble Energy (NYSE: NBL) beat Wall Street forecasts in the third quarter. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.

Earnings and Revenue:
Noble Energy's EPS topped estimates while the company's revenues fell in line with predictions. The company reported adjusted net income of $1.24/share versus the $1.03/share estimate and revenues of $924 million versus the $926 million estimate. Revenue climbed 28.2% from the same period last year.
For the past five quarters, net income has increased more than twofold year over year on average. Noble Energy's revenue has grown during each of the past four quarters on a year-over-year basis.

Income:
For the year, Noble Energy reported net income of $5.07/share. The company trumped analyst projections of $4.64 by 9.3%. According to the reported number, the company's income rose 90.1% from last year's levels.

Conference Call:
The conference call for third quarter earnings can be accessed here.

Official Comment:
Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "It was an outstanding quarter for Noble Energy as we reported record volumes from the DJ basin, along with record natural gas sales in Israel. We expect a strong finish to 2011 as our activity continues to accelerate in the horizontal Niobrara play, and we integrate our newly established core position in the Marcellus shale. The fourth quarter should also see first oil production from the Aseng project in Equatorial Guinea and the Raton South development in the Gulf of Mexico. In addition, we anticipate well results from several impactful exploration opportunities. This positive outlook for the fourth quarter together with performance to date has led us to raise production guidance for the second time this year, which now is expected to exceed the top end of our original guidance range." The Company's total sales volumes for the third quarter 2011 averaged 224 MBoe/d. Production volumes were 223 MBoe/d, with the difference attributable to an overlifted position of crude oil and condensate in Equatorial Guinea."

Industry:
With price/earnings growth of 1%, Noble Energy's industry, oil-US export and production, is expanding. With its recently reported EPS, the company is trailing the industry's estimate average by 73.6%.

What to Do Next:
Now you're all set to decide what to do with those Noble Energy shares until the next earnings announcement. Whether you buy, sell, or hold, check back with us before the company's next earnings release for a full preview.

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