Noble Q2 adjusted net income misses estimates; guidance cut on Brazil rig suspensions - NE News | RalliesNoble Q2 adjusted net income misses estimates; guidance cut on Brazil rig suspensions
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NE• Analyst coverage and valuation
- The current average analyst rating on the shares is hold, with 4 strong buy or buy, 9 hold and no sell or strong sell recommendations
- The average consensus recommendation for the oil & gas drilling peer group is buy
- Wall Street's median 12-month price target for Noble Corporation PLC is $50.00, about 15.6% above its July 24 closing price of $43.26
- The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 34 three months ago
What drove the quarterly results
- Brazil rig suspensions - Company said Q2 was adversely impacted by $43 mln due to operational suspension of two rigs in Brazil
- Contract conclusion - Sequential revenue decrease was driven by the conclusion of the contract in the Black Sea
Noble Globetrotter Is
Lower fleet utilization - Utilization of marketed rigs fell to 64% in Q2 from 68% in the prior quarterQuarterly results miss on adjusted earnings
- Adjusted EPS and adjusted net income for Q2 missed analyst expectations
- U.S. offshore drilling contractor's Q2 revenue beat analyst expectations
- Quarterly results were impacted by Brazil rig suspensions; full-year revenue and EBITDA guidance was cut
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Revenue | Beat | $720 mln | $695.79 mln (7 Analysts) |
| Q2 Adjusted EPS | Miss | $0.01 | $0.18 (7 Analysts) |
| Q2 Loss Per Share | | $0.23 | |
| Q2 Adjusted Net Income | Miss | $2 mln | $27.02 mln (3 Analysts) |
| Q2 Net Loss | | $37 mln | |
Outlook lowered after Brazil rig suspensions
- Noble lowers 2026 revenue guidance to $2.8-$2.9 bln from $2.8-$3.0 bln
- Company cuts 2026 adjusted EBITDA guidance to $850-$925 mln from $940-$1,020 mln
- Noble expects 2027 and beyond market outlook to be promising for deepwater and harsh environment rigs
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