It has been about a month since the last earnings report for Noble Energy (NBL). Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Noble due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Noble Energy Q1 Loss Wider Than Expected, Revenues Beat
Noble Energy, Inc. incurred an adjusted loss of 9 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 8 cents.
On a GAAP basis, the company incurred a loss of 65 cents against earnings of $1.14 registered in the year-ago quarter.
Noble Energy's total revenues declined 18.2% year over year to $1,052 million in the first quarter. Nevertheless, the top line outpaced the Zacks Consensus Estimate of $1,004 million by 4.8%.
In the quarter under review, sales volume averaged 337 thousand barrels of oil equivalent per day (MBoe/d). U.S. onshore volumes averaged 253 MBoe/d. U.S. onshore assets contributed 75% to total sales volume in the first quarter.
The company incurred operating loss of $91 million against operating income of $708 million in the year-ago quarter.
U.S. onshore realized crude oil and condensate prices in the reported quarter dropped 13% to $53.46 per barrel from the year-ago quarter’s level of $61.50.
U.S. onshore natural gas prices were $2.49 per thousand cubic feet, down 4.2% year over year.
U.S. onshore realized prices for natural gas liquids decreased 30% to $17.86 per barrel.
Noble Energy's cash and cash equivalents as of Mar 31, 2019, were $528 million, down from $716 million on Dec 31, 2018.
Long-term debt was $6,738 million as of Mar 31, 2019, compared with $6,574 million on Dec 31, 2018.
Cash flow from operating activities in the quarter under review was $528 million, down from $583 million in the prior-year quarter.
For the second quarter of 2019, Noble Energy expects sales volumes in the range of 332- 347 MBoe/d.
Furthermore, the company intends to make organic capital expenditures worth $675-$750 million in the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -304.27% due to these changes.
Currently, Noble has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Noble has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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