Yahoo Finance Why Noble’s Stock Rose despite Lower-than-Expected Earnings
Why Noble’s Stock Rose despite Lower-than-Expected Earnings
Noble Energy’s stock performance
Following Noble Energy’s (NBL) 1Q16 earnings release on May 4, its stock rose ~1%. NBL’s stock fell ~29% year-over-year.
NBL’s peers EQT Corporation (EQT), Antero Resources (AR), and Cabot Oil & Gas (COG) have fallen 33%, ~41%, and 29%, respectively, year-over-year. COG, NBL, and EQT make up 4% of XLE.
In the above graph, we can see NBL’s stock performance with respect to movements in the broader industry and the broader market.
In the period under discussion—April 21 to May 5—NBL outperformed the broader energy industry (XLE), which fell 1% during this period. NBL decreased ~0.01% during the same period. NBL also outperformed the broader market (SPY), which fell ~1.9% during the period.
In the above graph, it’s clear that NBL’s performance has been driven mostly by natural gas prices (UNG) and WTI (West Texas Intermediate) crude oil prices (USO). These inputs have also been major drivers for XLE.
Following NBL’s 1Q16 earnings release on May 4, its stock increased despite its earnings coming in lower than expected. A 2.6% increase in natural gas prices likely pulled NBL’s stock higher. See Part 1 of this series to learn how NBL performed in 1Q16. However, its stock dropped on May 5 by 1.1%.
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