Noble Energy: Will It Miss? - Analyst Blog
February 04 2013 - 1:00PM
Zacks
Noble Energy Inc. (NBL) 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.
Earnings Whispers
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 follows:
BreitBurn Energy Partners L.P. (BBEP) has
earnings ESP of +4.35% and carries a Zacks Rank #1 (Strong
Buy).
Rex Energy Corporation (REXX) has earnings ESP
of +25.0% and carries a Zacks Rank #2 (Buy).
SandRidge Permian Trust (PER) has earnings ESP
of +13.64% and carries a Zacks Rank #2 (Buy).
BREITBURN EGY (BBEP): Free Stock Analysis Report
NOBLE ENERGY (NBL): Free Stock Analysis Report
SANDRIDGE PERMN (PER): Free Stock Analysis Report
REX ENERGY CORP (REXX): Free Stock Analysis Report
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