A month has gone by since the last earnings report for Noble Energy Inc. . Shares have lost about 10.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Noble Energy Posts Earnings in Q4, Misses on Revenues
Noble Energy reported adjusted earnings of $0.26 per share for the fourth quarter of 2016 against the Zacks Consensus Estimate of a loss of $0.09. Quarterly earnings, however, dropped 40.9% from the year-ago level of $0.44.
On a GAAP basis, the company incurred a loss of $0.59 per share, much narrower than the year-ago loss of $4.73. The difference between adjusted and GAAP figures was due to the combined effect of a loss related to commodity derivative instruments, exploration expenses and asset impairments. These losses were partially offset by a gain on divestiture.
Full-year 2016 adjusted loss came in at $0.58, narrower than the Zacks Consensus Estimate of a loss of $0.94. In 2015, the company had reported earnings of $0.52.
Total Revenue
Noble Energy's total revenue increased around 17.4% year over year to $1,010 million in the fourth quarter. Reported revenues marginally missed the Zacks Consensus Estimate of $1,048 million.
Full-year 2017 revenues were $3,491 million, missing the Zacks Consensus Estimate of $3,600 million by 3%. However, yearly revenues have risen 9.7% from $3,183 million in the year-ago period.
Operational Results
In the quarter under review, sales volumes averaged 410 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 2.8% year-over-year drop. As far as sales components are concerned, liquids comprised 46% of the sales volume, while natural gas accounted for the rest.
U.S. sales accounted for 70% of the total volume, while international sales accounted for the rest.
Lease operating expenses (LOE) were significantly lower at $3.44 per barrel of oil equivalent (BOE), representing a 9% decline from the fourth-quarter 2015 level.
Interest expenses in the quarter were $86 million, up 7.5%.
Realized Prices
Realized crude oil and condensate prices in the quarter increased 22.4% to $47.41 per barrel from the year-ago level of $38.75. Natural gas realizations increased to $2.63 per thousand cubic feet (Mcf) from $2.19 in the year-ago period.
Realized prices for natural gas liquids were up 73.5% to $20.04 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Dec 31, 2016 were $1,180 million, up from $1,028 million as of Dec 31, 2015.
Long-term debt was $7,011 million as of Dec 31, 2016, down from $7,976 million as of Dec 31, 2015. Cash flow from operating activities in the quarter was $297 million, down 48.4% from $576 million last year.
Capital expenditure in the quarter was $638 million, up 22.2%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four upward revisions for the current quarter compared to two downward. In the past month, the consensus estimate has shifted upward by 16.5% due to these changes.
VGM Scores
At this time, Noble Energy's stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with a 'B'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Noble Energy (NBL) Down 10.5% Since the Last Earnings Report?
A month has gone by since the last earnings report for Noble Energy Inc. . Shares have lost about 10.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Noble Energy Posts Earnings in Q4, Misses on Revenues
Noble Energy reported adjusted earnings of $0.26 per share for the fourth quarter of 2016 against the Zacks Consensus Estimate of a loss of $0.09. Quarterly earnings, however, dropped 40.9% from the year-ago level of $0.44.
On a GAAP basis, the company incurred a loss of $0.59 per share, much narrower than the year-ago loss of $4.73. The difference between adjusted and GAAP figures was due to the combined effect of a loss related to commodity derivative instruments, exploration expenses and asset impairments. These losses were partially offset by a gain on divestiture.
Full-year 2016 adjusted loss came in at $0.58, narrower than the Zacks Consensus Estimate of a loss of $0.94. In 2015, the company had reported earnings of $0.52.
Total Revenue
Noble Energy's total revenue increased around 17.4% year over year to $1,010 million in the fourth quarter. Reported revenues marginally missed the Zacks Consensus Estimate of $1,048 million.
Full-year 2017 revenues were $3,491 million, missing the Zacks Consensus Estimate of $3,600 million by 3%. However, yearly revenues have risen 9.7% from $3,183 million in the year-ago period.
Operational Results
In the quarter under review, sales volumes averaged 410 thousand barrels of oil equivalent per day (MBoe/d), reflecting a 2.8% year-over-year drop. As far as sales components are concerned, liquids comprised 46% of the sales volume, while natural gas accounted for the rest.
U.S. sales accounted for 70% of the total volume, while international sales accounted for the rest.
Lease operating expenses (LOE) were significantly lower at $3.44 per barrel of oil equivalent (BOE), representing a 9% decline from the fourth-quarter 2015 level.
Interest expenses in the quarter were $86 million, up 7.5%.
Realized Prices
Realized crude oil and condensate prices in the quarter increased 22.4% to $47.41 per barrel from the year-ago level of $38.75. Natural gas realizations increased to $2.63 per thousand cubic feet (Mcf) from $2.19 in the year-ago period.
Realized prices for natural gas liquids were up 73.5% to $20.04 per barrel.
Financial Highlights
Noble Energy's cash and cash equivalents as of Dec 31, 2016 were $1,180 million, up from $1,028 million as of Dec 31, 2015.
Long-term debt was $7,011 million as of Dec 31, 2016, down from $7,976 million as of Dec 31, 2015. Cash flow from operating activities in the quarter was $297 million, down 48.4% from $576 million last year.
Capital expenditure in the quarter was $638 million, up 22.2%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four upward revisions for the current quarter compared to two downward. In the past month, the consensus estimate has shifted upward by 16.5% due to these changes.
Noble Energy Inc. Price and Consensus
Noble Energy Inc. Price and Consensus | Noble Energy Inc. Quote
VGM Scores
At this time, Noble Energy's stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with a 'B'. However, the stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been broadly trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.