The 10-second takeaway
For the quarter ended June 30 (Q2), Noble Energy missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins contracted, net margins increased.
Noble Energy reported revenue of $1.15 billion. The 13 analysts polled by S&P Capital IQ expected to see revenue of $1.19 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $934.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.69. The 25 earnings estimates compiled by S&P Capital IQ averaged $0.73 per share. Non-GAAP EPS of $0.69 for Q2 were 77% higher than the prior-year quarter's $0.39 per share. (The prior-year quarter included $0.05 per share in earnings from discontinued operations.) GAAP EPS of $1.04 for Q2 were 32% higher than the prior-year quarter's $0.79 per share. (The prior-year quarter included $0.05 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.7%, 20 basis points worse than the prior-year quarter. Operating margin was 31.4%, 850 basis points worse than the prior-year quarter. Net margin was 32.8%, 150 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $5.17 billion. The average EPS estimate is $3.65.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 406 members out of 420 rating the stock outperform, and 14 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Noble Energy a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Noble Energy is outperform, with an average price target of $67.42.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.