Noble Corp Earnings Cheat Sheet: Misses Expectations

S&P 500 (NYSE:SPY) component Noble Corporation (NYSE:NE) reported its results for the second quarter. Noble Corp. is a contract driller of oil and natural gas wells. It provides customers in the oil and gas industry with offshore drilling services and engineering and consulting services.

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Noble Earnings Cheat Sheet for the Second Quarter

Results: Net income for the oil and gas drilling and exploration company fell to $54.1 million (21 cents per share) vs. $217.9 million (85 cents per share) a year earlier. This is a decline of 75.2% from the year earlier quarter.

Revenue: Fell 11.5% to $628 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NE fell short of the mean analyst estimate of 28 cents per share. It fell short of the average revenue estimate of $651.4 million.

Quoting Management: David W. Williams, Chairman, President and Chief Executive Officer, noted, “Second quarter results were significantly hindered by several downtime events involving five rigs. Although we were disappointed by the interruption in service on these rigs, most of which pertained to subsea equipment and control systems, four out of five rigs returned to service prior to the end of the second quarter. Despite the fleet downtime, the quarter was characterized by an improvement in business fundamentals, as utilization and tendering activity improved for both jackups and deepwater units, and several Noble rigs returned to active status.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 31.2% to $578.9 million in the first quarter. The figure fell 31.5% in the fourth quarter of the last fiscal year from the year earlier and dropped 32.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 2 cents with net income of 16 cents versus a mean estimate of net income of 18 cents per share.

Net income has dropped 72.5% year over year on average across the last five quarters. Performance was hurt by an 85.3% decline in the first quarter from the year earlier quarter.

Competitors to Watch: Noble Corporation (N0L), Transocean LTD (NYSE:RIG), Diamond Offshore Drilling, Inc. (NYSE:DO), Pride International, Inc. (NYSE:PDE), Hercules Offshore, Inc. (NASDAQ:HERO), ENSCO PLC (NYSE:ESV), Atwood Oceanics, Inc. (NYSE:ATW), Vantage Drilling Company (AMEX:VTG), Seahawk Drilling, Inc. (NASDAQ:HAWK), and Rowan Companies, Inc. (NYSE:RDC).

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(Source: Xignite Financials)