Noble Earnings: Here’s Why the Stock is Up Now

Noble Corp. (NYSE:NE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.03%.

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Noble Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25.53% to $0.59 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Rose 21.73% to $971 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Noble Corp. reported adjusted EPS income of $0.59 per share. By that measure, the company beat the mean analyst estimate of $0.56. It missed the average revenue estimate of $987.18 million.

Quoting Management: David W. Williams, Chairman, President and Chief Executive Officer of Noble Corporation stated, “During the first quarter, we saw an improvement in our operational performance across several regions, compared to the fourth quarter of 2012. Two rigs accounted for most of the downtime in the quarter, the semisubmersibles Noble Clyde Boudreaux in Australia and in Brazil, the Noble Paul Wolff which experienced a failure of its wellhead connector bolts. Additional downtime was also experienced on the drillship Noble Globetrotter I in the U.S. Gulf, however, fleet-wide unplanned operational downtime improved by approximately 2 percentage points in the quarter from 7 percent in the fourth quarter of 2012. While our performance improved in the quarter, achieving further reductions in downtime and improving operational performance remain key objectives for the Company.”

Key Stats (on next page)…

Revenue increased 0.48% from $966.37 million in the previous quarter. EPS increased 15.69% from $0.51 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.01 to a profit $0.71. For the current year, the average estimate has moved down from a profit of $4.04 to a profit of $3.02 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)