Noble Energy Inc.
) is scheduled to release its fourth quarter 2012 financial
results before the market bell on Feb 7, 2013. In the last
reported quarter, the exploration and production company posted a
negative earnings surprise of 10.58%. Let's see how things are
shaping up at Noble Energy prior to this announcement.
Factors to Consider This Quarter
Noble Energy is expected to ride high on the back of rising
production volume from its Marcellus, Wattenburg and
Denver/Julesburg (DJ) Basin plays. Outside the US, the company's
Noa and Pinnacle blocks in offshore Israel came into operation in
the third quarter which will add to sales, going forward.
However, the impact of Hurricane Sandy led to disruption in
the company's deepwater Gulf of Mexico operations which could
somewhat offset sales. Also, political disturbances in Africa
might be a source of concern for the company given its major
operations in this region.
Our proven model does not conclusively show that Noble Energy
is likely to beat earnings this quarter. This is because a stock
needs to have both a positive earnings Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here.
Negative Zacks ESP
: This is because the Most Accurate estimate stands at $1.08 per
share while the Zacks Consensus Estimate is higher at $1.11,
resulting in -2.70% ESP.
Zacks Rank #2 (Buy)
: Noble Energy's Zacks Rank #2 when combined with negative ESP
makes surprise prediction difficult. We caution investors against
the stock going into the earnings announcement, as a negative
Zacks ESP lowers the possibility of an earnings surprise.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that they have the right combination of
elements to post an earnings beat this quarter are as
BreitBurn Energy Partners L.P.
) has earnings ESP of +4.35% and carries a Zacks Rank #1 (Strong
Rex Energy Corporation
) has earnings ESP of +25.0% and carries a Zacks Rank #2
SandRidge Permian Trust
) has earnings ESP of +13.64% and carries a Zacks Rank #2
BREITBURN EGY (BBEP): Free Stock Analysis
NOBLE ENERGY (NBL): Free Stock Analysis
SANDRIDGE PERMN (PER): Free Stock Analysis
REX ENERGY CORP (REXX): Free Stock Analysis
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