NE Earnings Prediction
The chart below shows how NE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NE sees a +2.35% change in stock price 10 days leading up to the earnings, and a -3.62% change 10 days following the report. On the earnings day itself, the stock moves by +1.27%. This data can give you a slight idea of what to expect for the next quarter's release.
NE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
882.09M
44.78%
15.53%
Gross Margin
24.21%
-3.31%
-15.76%
Operating Margin
21.68%
2.26%
-10.38%
Net Margin
10.96%
-55.39%
36.66%
EPS
0.60
-41.75%
50.00%
No Data Available
NE Earnings Analysis
Noble Corporation PLC Corporation (NE.N) Earnings Conference Call
Positive
Strategic Acquisition Synergies: Noble Corporation completed the strategic acquisition of Diamond Offshore, enhancing its position in deepwater operations and achieving $100 million in synergies, with half already realized.
Adjusted EBITDA Performance: In Q4 2024, Noble reported an adjusted EBITDA of $319 million, marking a solid performance in its first full quarter with Diamond Offshore.
Return of Capital Progress: The company has made significant progress in its Return of Capital program, paying $80 million in dividends and repurchasing $50 million in shares, totaling over $575 million for the year.
New Contract Secured: Noble secured over $500 million in new contracts, bolstering its contract coverage for 2025 and 2026, with day rates for tier-1 drillships remaining firm in the mid-to-high $400s per day.
Positive Deepwater Market Outlook: The global deepwater market outlook remains positive, with expectations of increased demand for rigs in the coming years, particularly in the Americas and South America, where Noble has a strong presence.
Strong Future Revenue Potential: Noble's total backlog stands at $5.8 billion, with $2.4 billion scheduled for revenue conversion in 2025, indicating strong future revenue potential.
Free Cash Flow Increase: The company anticipates a step-up in free cash flow for 2025, supported by lower capital expenditures following a peak in the SPS cycle, and plans to deploy excess cash flow towards share buybacks after dividends.
Negative
Deepwater Demand Decline: The company experienced a mid-cycle lull in demand, with contracted deepwater demand decreasing from 105 rigs and 94% utilization to 100 rigs and 89% utilization.
West Africa Demand Decline: There was a notable decline in demand in West Africa, with current demand at 13 UDW rigs, down from 17 to 20 rigs in 2023 and early 2024.
Project Timeline Delay: The expected FID for the Venus project in Namibia has slipped from 2025 to 2026, indicating delays in project timelines.
Jackup Market Challenges: The overall jackup market in Norway remains subdued, which is negatively impacting the potential earnings of Noble's CJ70 rigs.
Free Cash Flow Challenges: The company reported a free cash flow of only $2 million in Q4 2024, which was burdened by transaction costs related to the Diamond acquisition and a temporary increase in net working capital.
Q1 2025 EBITDA Decline: The guidance for Q1 2025 indicates a marginal decline in adjusted EBITDA by approximately 5% quarter-on-quarter, excluding the impact of a contract termination in Q4 2024.
Acquisition Synergy Costs: The company anticipates incurring $40 million in costs to achieve the remaining synergies from the Diamond acquisition in 2025, which adds to operational expenses.
Inflation Impact on Margins: Inflation rates are expected to average 3% to 4% across various cost components, which could further pressure margins.
NE FAQs
How does NE typically perform around its earnings report dates?
Is Noble Corporation PLC (NE) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
NE Earning Call Sentiment
Noble Corporation Plc (NYSE:NE) Q4 2024 Earnings Call Transcript
NE.N
-0.08%Positive
The earnings call reveals mixed sentiments. The company has strong financial metrics with steady revenue and EBITDA, but the decision to retire drillships and utilization gaps pose risks. The Q&A indicates uncertainty in fleet optimization and market conditions. Despite a robust return of capital and positive guidance for 2025, the lack of clear direction on fleet management and market utilization tempers optimism. Thus, the overall sentiment is neutral.
