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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