On Oct. 17, Noble (NYSE:NE) released third-quarter earnings for the period ended Sept. 30.

  • Revenue increased roughly 41% year over year, thanks to fat dayrates.
  • Margin expansion and a reduced share count led to amplified gains on the bottom line, with EPS rising 55% year over year and 9% sequentially.
  • Our community investor intelligence database, Motley Fool CAPS, loves drillers,¬†giving Noble, Transocean (NYSE:RIG), and Diamond Offshore (NYSE:DO) a stellar five stars each.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$791.3

$562.0

40.8%

Net Profit

$318.3

$207.2

53.6%

EPS

$1.18

$0.76

55.3%

Diluted Shares

269.5

274.0

(1.6%)

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Operating Margin

49.8%

45.6%

4.2

Net Margin

40.2%

36.9%

3.4

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$150.6

$169.8

(11.3%)

Accounts Rec.

$519.6

$390.8

33%

Inventory

$4.4

$4.6

(3%)

Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$197.8

$133.0

48.8%

Long-Term Debt

$776.8

$686.9

13.1%

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$995.4

$695.3

43.2%

Capital Expenditures

$872.7

$740.6

17.8%

Free Cash Flow

$122.7

($45.4)

N/A

Free cash flow is a Fool's best friend

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