Noble Earnings: Revenue and Net Income GROW

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S&P 500 (NYSE:SPY) component Noble Corporation (NYSE:NE) reported net income above Wall Street’s expectations for the second quarter. Noble is a contract driller of oil and natural gas wells. It provides customers in the oil and gas industry with offshore drilling services and engineering and consulting services.

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Noble Corporation Earnings Cheat Sheet

Results: Net income for Noble Corporation rose to $159.8 million (63 cents per share) vs. $54.1 million (21 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 43.1% to $898.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Noble Corporation beat the mean analyst estimate of 58 cents per share. Analysts were expecting revenue of $895.7 million.

Quoting Management: “Quarterly results, when compared to the first quarter, include improvements in revenues, margins and cash from operations,” stated David W. Williams, Chairman, President and Chief Executive Officer of Noble Corporation. “These improvements are the result of continuing strength in the offshore drilling business. Furthermore, our fleet mix has begun to shift with the addition of the ultra-deepwater drillships Noble Bully I, Noble Bully II and Noble Globetrotter I. Revenues from our floating rig fleet accounted for approximately 65 percent of contract drilling services revenues in the quarter, including an estimated 33 percent of revenues from our ultra-deepwater fleet of rigs. These contributions are expected to grow further as we add the remaining five ultra-deepwater drillships to our active fleet. Finally, we have seen some early benefits from a number of operational and process improvements, which have led to fewer unpaid downtime days across the fleet, a figure that declined to under three percent in the quarter.”

Key Stats:

The company’s net income has now been increasing for four consecutive quarters. In the first quarter, net income rose more than twofold while the figure climbed 28.6% in the fourth quarter of the last fiscal year and 57.3% in the third quarter of the last fiscal year from the year earlier.

Revenue has risen the past four quarters. Revenue increased 37.8% to $797.7 million in the first quarter. The figure rose 16.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 20.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 47 cents versus a mean estimate of net income of 41 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 77 cents per share to 71 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.74 per share, down from $2.84 ninety days ago.

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

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