Noble Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Noble Energy (NYSE:NBL) will unveil its latest earnings on Thursday, October 25, 2012. Noble Energy is an independent energy company that acquires and produces crude oil, natural gas, and natural gas liquids.

Noble Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.03 per share, a decline of 16.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.19. Between one and three months ago, the average estimate moved down. It also has dropped from $1.05 during the last month. Analysts are projecting profit to rise by 8.5% compared to last year’s $4.86.

Past Earnings Performance: Last quarter, the company missed estimates by 21 cents, coming in at profit of 77 cents per share versus a mean estimate of net income of 98 cents per share. In the first quarter, the company beat estimates by 33 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 13.6% in revenue from the year-earlier quarter to $1.05 billion.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had risen $7.64 (8.8%), from $86.60 to $94.24. The stock price saw one of its best stretches over the last year between April 20, 2012 and April 27, 2012, when shares rose for six straight days, increasing 6.9% (+$6.42) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 9.2% (-$8.32) over that span.

Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 21.2% in the third quarter of the last fiscal year, 24.8% in the fourth quarter of the last fiscal year and 29.6% in the first quarter before increasing again in the second quarter.

The company’s gross margin shrank by 11.4 percentage points in the in the second quarter. Revenue rose 1.3% while cost of sales rose 50.7% to $336 million from a year earlier.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.95 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

A Look Back: In the second quarter, profit fell 0.7% to $292 million ($1.58 a share) from $294 million ($1.61 a share) the year earlier, missing analyst expectations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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