3 Stocks Affecting the Dow After Big Earnings
Schlumberger Limited (NYSE:SLB): The global oilfield services company reported higher profits in its second quarter earnings. Net income for Schlumberger Limited rose to $1.34 billion (71 cents per share) vs. $818 million (68 cents per share) in the same quarter a year earlier. This marks a rise of 64.3% from the year earlier quarter. Revenue rose 62% to $9.62 billion from the year earlier quarter. The company fell short of the mean analyst estimate of 85 cents per share. It beat the average revenue estimate of $9.17 billion. Schlumberger Chairman and CEO Andrew Gould commented, “Second-quarter results showed strong growth worldwide. All Product Groups grew at double-digit rates. In North America, a prolonged Canadian spring break-up and poor weather in the northwest were offset by very strong growth in the rest of US land and a significant contribution from deepwater operations as the rig count increased and renewed interest in exploration activity in the Gulf of Mexico led to high multiclient seismic data sales.” SLB stock is down -3.04% after hours.
Competitors to Watch: Halliburton Company (NYSE:HAL), Weatherford Intl. Ltd. (NYSE:WFT), Baker Hughes Incorporated (NYSE:BHI), National-Oilwell Varco, Inc. (NYSE:NOV), Allis-Chalmers Energy Inc. (NYSE:ALY), Complete Production Services, Inc. (NYSE:CPX), Petroleum Geo-Services ASA (PGSVY), TETRA Technologies, Inc. (NYSE:TTI), and Recon Technology, Ltd. (NASDAQ:RCON).
General Electric (NYSE:GE): The advanced technology, services and finance company reported its second quarter earnings this morning, with net income rising to $3.84 billion (34 cents per share) vs. $3.11 billion (28 cents per share) in the same quarter a year earlier. This marks a rise of 23.4% from the year earlier quarter. Revenues fell off 4.9% to $35.6 billion from the year earlier quarter. GE beat the mean analyst estimate of 32 cents per share. It beat the average revenue estimate of $34.72 billion. “GE Capital’s portfolio transformation is ahead of schedule. Consumer and Commercial Lending and Leasing (CLL) led with earnings growth of 57% and more than 100%, respectively. We continue to see strong demand for credit with CLL new volume originations at $10.8 billion for the quarter, up 33% from prior year.” “With our fifth-consecutive quarter of double-digit earnings growth, we continue to execute in a volatile environment,” GE Chairman and CEO Jeff Immelt said. “We posted solid overall operating earnings growth of 18%, with strong contributions from GE Capital, Healthcare, Transportation, Aviation, and Oil & Gas. GE’s backlog grew to a record high of $189 billion. Total infrastructure orders were up 24%, reflecting robust strength in equipment orders, up 33%, and service orders up 16%.” GE stock closed down -0.63%.
Xerox Corporation (NYSE:XRX): The brand name office product maker and developer reported higher than expected net income in the second quarter. Net income for the business rose to $327 million (22 cents per share) vs. $227 million (16 cents per share) in the same quarter a year earlier. This marks a rise of 44.1% from the year earlier quarter. Revenues rose 2% to $5.6 billion from the year earlier quarter. XRX reported adjusted net income of 27 cents per share. By that measure, the company beat the mean estimate of 24 cents per share. Analysts were expecting revenue of $5.63 billion. “During the second quarter, our disciplined focus on scaling our services business and delivering operational improvements helped to increase bottom-line results and generate operating cash, positioning us well to increase our earnings expectations for the full-year,” said Ursula Burns, Xerox chairman and chief executive officer.” XRX stock closed down -2.14%.
Competitors to Watch: Canon Inc. (NYSE:CAJ), Pitney Bowes (NYSE:PBI), Staples (NASDAQ:SPLS), Office Depot (NYSE:ODP), OfficeMax (NYSE:OMX), Dell (NASDAQ:DELL), FedEx (NYSE:FDX), IBM (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ),