Fourth Quarter Analyst Estimates
For the fourth quarter, Noble Energy was ahead of analysts’ expectations on revenues and comfortably surpassed expectations on earnings per share. The company posted revenue of $1.17 billion while the 14 analysts polled by S&P Capital IQ had forecast a top line of $1.13 billion.
GAAP reported sales were 25% higher than the $936.0 million in the same quarter of the previous year. EPS was $1.65 a share, which was well ahead of the 26 earnings estimates compiled by S&P Capital IQ, which predicted $1.13 per share.
GAAP EPS were $1.40 for this quarter versus -$1.67 per share year on year. For the quarter, gross margin was 84.0%, an improvement of 2.1% year on year. Operating margin was 32.0%, an 8.3% improvement, while the net margin at 21.5% showed an improvement of 5.3%. Next quarter’s average estimate for revenue is $1.13 billion, producing an average EPS estimate of $1.32. For the full year 2013, the average revenue estimate is $5.11 billion with an average EPS estimate of $6.51 a share.
Other Energy Players
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a provider of onshore contract drilling services for oil and natural gas exploration in Canada and the United States. The company reported an EPS of 40 cents a share, exceeding consensus estimates by 12 cents a share while revenues also came in at around 9% above consensus. The stock is undervalued with a multiple of less than 10 times trailing earnings and a market price only 10% above book.
EOG Resources, Inc. (NYSE:EOG) reported net income of $570.3 million, or an EPS of $2.11 per share for the full year 2012, compared to $1.09 billion, or an EPS of $4.10 per share, for the previous full year. EOG showed a net loss of $505.0 million, or $1.88 per share for the fourth quarter in comparison to net income of $120.7 million, or $0.45 per share for the same quarter of the preceding year. The company showed $849.4 million, net of tax ($3.13 per share) in impairment charges to Canadian natural gas assets. Migrating on the company is a Hold because it is still weighted towards natural gas.
Anadarko Petroleum Corporation (NYSE:APC) has an exciting international portfolio with three major natural gas fields off the coast of Mozambique. This could make the country one of the largest producers of liquefied natural gas in the world in addition to Qatar and Australia. The company also has quality assets in the Gulf of Mexico, the Rocky Mountains and the Appalachian basin. Macquarie has said that Anadarko’s large potential reserves could, in the event of it being acquired, command a price of $102 per share, which is a considerable premium on the current stock price.
Conclusion
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Noble Energy is outperform, with an average price target of $120.75 against the current price of around $112. If you are looking for energy exposure, I would recommend that you look at buying the stock.
The article This Stock Will Fuel Your Energy Portfolio Growth This Year originally appeared on Fool.com and is written by Jordo Bivona.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
