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Noble Energy (NBL) to Post Q1 Earnings: What's in the Cards?
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Noble Energy Inc. is scheduled to release first-quarter 2020 results on May 8. In the last reported quarter, the company delivered a positive earnings surprise of 44.4%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
During the first quarter, the novel coronavirus outbreak resulted in unprecedented economic crisis and a slowdown of commercial and industrial activities on a global scale, in turn lowering the demand for oil and resulting in a drop in prices. Of Noble Energy’s total production, 60% has been hedged, which is likely to have somewhat protected the company from the huge commodity price decline.
During the first quarter, Noble Energy decided to trim capital expenditure and identified avenues wherein it can lower expenses. Some benefits of these steps are expected to have been realized in the first quarter.
The company began operations in the Leviathan natural gas field, offshore Israel, on Dec 31, 2019. Contribution from this field is anticipated to have had a positive impact on first-quarter earnings.
Q1 Expectation
U.S. operations have been a major contributor to the company’s overall sales volume. The Zacks Consensus Estimate for crude oil and natural gas liquids sales volume per day in the United States is pegged at 117,000 and 66,000 barrels per day, indicating growth of 3.5% and 11.9%, respectively, from the year-ago reported figures.
The Zacks Consensus Estimate for first-quarter earnings per share is 3 cents, which indicates year-over-year growth of 133.4% from the prior-year reported figure.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Noble Energy this time around. The combination of a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Noble Energy carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Apache Corporation (APA - Free Report) is set to release first-quarter results on May 7. It has an Earnings ESP of +1.33% and a Zacks Rank of 3.
Talos Energy (TALO - Free Report) is set to release first-quarter results on May 7. It has an Earnings ESP of +25.00% and a Zacks Rank of 3.
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Noble Energy (NBL) to Post Q1 Earnings: What's in the Cards?
Noble Energy Inc. is scheduled to release first-quarter 2020 results on May 8. In the last reported quarter, the company delivered a positive earnings surprise of 44.4%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
During the first quarter, the novel coronavirus outbreak resulted in unprecedented economic crisis and a slowdown of commercial and industrial activities on a global scale, in turn lowering the demand for oil and resulting in a drop in prices. Of Noble Energy’s total production, 60% has been hedged, which is likely to have somewhat protected the company from the huge commodity price decline.
During the first quarter, Noble Energy decided to trim capital expenditure and identified avenues wherein it can lower expenses. Some benefits of these steps are expected to have been realized in the first quarter.
The company began operations in the Leviathan natural gas field, offshore Israel, on Dec 31, 2019. Contribution from this field is anticipated to have had a positive impact on first-quarter earnings.
Q1 Expectation
U.S. operations have been a major contributor to the company’s overall sales volume. The Zacks Consensus Estimate for crude oil and natural gas liquids sales volume per day in the United States is pegged at 117,000 and 66,000 barrels per day, indicating growth of 3.5% and 11.9%, respectively, from the year-ago reported figures.
The Zacks Consensus Estimate for first-quarter earnings per share is 3 cents, which indicates year-over-year growth of 133.4% from the prior-year reported figure.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Noble Energy this time around. The combination of a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Noble Energy Inc. Price and EPS Surprise
Noble Energy Inc. price-eps-surprise | Noble Energy Inc. Quote
Earnings ESP: The company’s Earnings ESP is 0.00%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Noble Energy carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Targa Resources Corp. (TRGP - Free Report) is set to release first-quarter results on May 7. It has an Earnings ESP of +0.75% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apache Corporation (APA - Free Report) is set to release first-quarter results on May 7. It has an Earnings ESP of +1.33% and a Zacks Rank of 3.
Talos Energy (TALO - Free Report) is set to release first-quarter results on May 7. It has an Earnings ESP of +25.00% and a Zacks Rank of 3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>