What's In The Offing For Noble Energy's (NBL) Q1 Earnings?

Noble Energy Inc. (NYSE:NBL) is scheduled to release first-quarter 2019 results on May 3. In the last reported quarter, the company pulled off a positive earnings surprise of 9.09%.

Let’s see how things are shaping up before the upcoming earnings announcement.

Factors to Consider

Noble Energy expects natural decline in the Eagle Ford to affect first-quarter results. West Africa volumes are expected to drop sequentially, primarily due to the timing of liftings. The company expects first-quarter total sales volume in the range of 321-336 thousand barrels of oil equivalent per day (MBoe/d) and capex within $725-$800 million.

The Zacks Consensus Estimate for first-quarter sales volume is pegged at 327 MBoe/d. The U.S. onshore volumes are expected to be low during the first quarter due to the timing of well completion.

The Zacks Consensus Estimate for total revenues is pegged at $1.04 billion, indicating a 21.9% fall from the year-ago reported figure.

Earnings Whispers

A stock needs to have a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate), and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. However, Noble Energy does not have the right combination, as elaborated below.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The stock currently carries a Zacks Rank #3. Noble Energy’s positive rank, when combined with 0.00% ESP, makes earnings beat unlikely this season.

However, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.

Stocks to Consider

Investors can consider the following players from the industry, which have the right combination of elements to deliver a positive earnings surprise in their upcoming releases.

FTS International Inc. (NYSE:FTSI) has an Earnings ESP of +54.24% and a Zacks Rank #2. It is expected to release first-quarter 2019 results on May 7. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cimarex Energy Co. (NYSE:XEC) has an Earnings ESP of +1.95% and a Zacks Rank of 2. It is expected to report first-quarter 2019 results on May 8.

Comstock Resources, Inc. (NYSE:CRK) has an Earnings ESP of +11.95% and a Zacks Rank #2. The company is expected to post first-quarter 2019 results on May 9.

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