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Noble Energy (NBL) to Post Q4 Earnings: What's in the Cards?

Zacks Equity Research

Noble Energy Inc. NBL is scheduled to release fourth-quarter 2018 results on Feb 19. In the last reported quarter, the company pulled off positive earnings surprise of 68.75%.

Factors to Consider

The Zacks Consensus Estimate for total revenues is pegged at $1.17 billion, representing 2.58% fall on a year-over-year basis. The consensus mark for fourth-quarter earnings is pegged at 11 cents per share, reflecting a decline of 65.63% on a year-over-year basis.

Noble Energy expects fourth-quarter total sales volume in the range of 337-349 thousand barrels of oil equivalent per day (MBoe/d) and anticipates capex in the range of $625-$700 million.

In the fourth quarter the company expects U. S crude oil sales volume per day in the range of 109-119 MBoe/d , the midpoint of which is lower than the Zacks Consensus Estimate of 116 MBoe/d. The Zacks Consensus Estimate for fourth-quarter Israel natural gas volumes is pegged at 232 million cubic fit per day (MMcf/d), which is higher than the midpoint of the company's guidance of 220-240 MMcf/d.

The company expects productivity from the first row of Mustang IDP development to contribute to growth from the DJ Basin.

Noble Energy Inc. Price and EPS Surprise

 

Noble Energy Inc. Price and EPS Surprise | Noble Energy Inc. Quote

 

Earnings Whispers

A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. However, Noble Energy does not have the right combination, which is elaborated below.

Earnings ESP: The company’s Earnings ESP is -5.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank:  The stock carries a Zacks Rank #3.

However, we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.

Stocks to Consider

Investors can consider the following players in the Zacks Oil and Energy sector with the right combination of elements to deliver a beat in their upcoming releases.

Warrior Met Coal Inc HCC has an Earnings ESP of +4.97% and a Zacks Rank #1. It is expected to release fourth-quarter 2018 results on Feb 21. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Solar Inc CSIQ has an Earnings ESP of +82.08% and a Zacks Rank of 1. It is expected to report fourth-quarter 2018 results on Mar 21.

WPX Energy WPX has an Earnings ESP of +3.80% and a Zacks Rank #3. The company is expected to post fourth-quarter 2018 results on Feb 21.

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