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Noble Energy (NBL) to Post Q2 Earnings: A Beat in the Cards?

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Noble Energy Inc. is scheduled to release second-quarter 2018 results on Aug 3. Last reported quarter, the company pulled off a positive earnings surprise of 25%. We expect the company to deliver a positive surprise this season.

Why a Positive Surprise?

Our proven model shows that Noble Energy is likely to beat estimates this to-be-reported quarter as the stock has the right combination of the two key ingredients for this to happen — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Noble Energy has an Earnings ESP of +6.74% as the Most Accurate Estimate of 26 cents is pegged higher than the Zacks Consensus Estimate of 24 cents. Moreover, a positive ESP raises the odds of a probable earnings surprise.

Zacks Rank: The stock carries a Zacks Rank #3, which increases the predictive power of ESP. The combination of Noble Energy’s solid Zacks Rank and a positive ESP makes us reasonably confident about an earnings beat this reporting cycle.

Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Noble Energy Inc. Price and EPS Surprise

Factors to Consider

Noble Energy expects second-quarter total sales volume in the range of 340-350 thousand barrels of oil equivalent per day (MBoe/d). However, with the close of sale of business interest in Tamar and Gulf of Mexico, the company expects the sales volumes to be lower compared with the amount recorded in the first quarter.

However, the company stands to gain from the northward movement in the oil prices and estimates crude oil and condensate sales volume in second-quarter 2018 to be in the range of 124-132 million barrel per day (Mbbl/d).

The Zacks Consensus Estimate for the company’s total revenues stands at $1,136 million, representing 5.5% increase from the year-ago quarter. The consensus mark for second-quarter earnings is pegged at 24 cents per share against a loss of 13 cents incurred in the prior-year period.

Other Stocks to Consider

Here are a few other companies worth considering from the same industry with the right combination of elements to also beat on earnings this time around:

Northern Oil and Gas, Inc. (NOG - Free Report) is expected to report second-quarter 2018 earnings on Aug 14. It has an Earnings ESP of +2.44% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Penn Virginia Corporation has an Earnings ESP of +6.72% and is a Zacks #1 Ranked player. It is slated to report second-quarter 2018 earnings on Aug 7.

Denbury Resources Inc. has an Earnings ESP of +27.78% and a Zacks Rank #2. It is scheduled to report second-quarter 2018 earnings on Aug 7.

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