Noble Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Noble (NYSE:NE) will unveil its latest earnings on Wednesday, July 18, 2012. 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.

Noble Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 58 cents per share, a rise of more than threefold 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 72 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 62 cents during the last month. Analysts are projecting profit to rise by 106.8% compared to last year’s $2.73.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported profit of 47 cents per share versus a mean estimate of net income of 41 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by one cent.

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A Look Back: In the first quarter, profit rose more than twofold to $120.2 million (47 cents a share) from $54.5 million (21 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 37.8% to $797.7 million from $578.9 million.

Wall St. Revenue Expectations: Analysts predict a rise of 43.8% in revenue from the year-earlier quarter to $903.2 million.

Stock Price Performance: Between April 17, 2012 and July 12, 2012, the stock price fell $3.05 (-8.4%), from $36.29 to $33.24. The stock price saw one of its best stretches over the last year between January 11, 2012 and January 20, 2012, when shares rose for seven straight days, increasing 13.7% (+$4.19) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 12.9% (-$4.82) over that span.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 57.3% in the third quarter of the last fiscal year and 28.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 20.5% in the third quarter of the last fiscal year and 16.7% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.84 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With 18 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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

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