Leading contract drilling company,
) is set to report its third-quarter 2013 results on Oct 16.
Let's see how things are shaping up prior to the announcement.
In the last quarter, the company's earnings of 63 cents per share
increased 6.8% year over year from 59 cents. The growth was aided
by a decrease in downtime along with dayrates improvement. Also,
the results were ahead of the Zacks Consensus Estimate of 56
Growth Factors this Past Quarter
In the second quarter, total revenue of Noble Energy rose 13.2%
to almost $1,017.4 million from $898.9 million in the comparable
quarter last year. The top line also beat the Zacks Consensus
Estimate of $1,015.0 million. Contract Drilling Services
contributed $975.5 million to the total revenue, reflecting a
year-over-year increase of 15.0% mainly on improved fleet
utilization and higher average dayrates.
The total operating income increased 3.9% to $253.9 million from
the year-ago level of $244.5 million. Operating income from the
Contract Drilling segment rose 3.0% year over year to $253.6
million from $246.2 million.
Noble has 78% of all rig days committed for this year, including
82% of floating rig days and 82% of jackup rig days. For 2014,
60% of the rig days are booked, comprising 80% of the floater
time and 52% of the jackup rig days. Overall total backlog at the
end of the second quarter was approximately $16.0 billion versus
$14.0 billion as of Jun 30.
Our proven model conclusively shows that Noble Energy is likely
to beat earnings estimates this quarter. This is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is the case
here as you will see below.
Zacks ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is +1.41%.
This is because the Most Accurate estimate is at 72 cents while
the Zacks Consensus Estimate currently stands at 71 cents.
Zacks Rank: Noble Energy's Zacks Rank #3 (Hold) increases the
predictive power of ESP because the Rank when combined with an
ESP of +1.41% indicates the possibility of positive results. We
caution against stocks with Zacks Rank #4 and 5 (Sell rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may also want to consider as our
model shows that these have the right combination of elements to
post an earnings beat this quarter.
Ocean Rig UDW Inc.
), earnings ESP of +100.00% and a Zacks Rank #1 (Strong Buy).
Swift Energy Co.
), earnings ESP of +13.33% and a Zacks Rank #1 (Strong Buy).
Stone Energy Corp.
), earnings ESP of +8.11% and a Zacks Rank #1 (Strong Buy).
NOBLE CORP (NE): Free Stock Analysis Report
OCEAN RIG UDW (ORIG): Free Stock Analysis
SWIFT ENERGY CO (SFY): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
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