Schlumberger Earnings: Here’s How We Delivered

S&P 500 (NYSE:SPY) component Schlumberger Limited (NYSE:SLB) reported its results for the third quarter. Schlumberger is a global oilfield services company. Through its subsidiaries, it supplies technology, integrated project management and information solutions to consumers in the oil and gas industry.

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Schlumberger Limited Earnings Cheat Sheet

Results: Net income for the oil-field services rose to $1.42 billion ($1.07 per share) vs. $1.3 billion (96 cents per share) in the same quarter a year earlier. This marks a rise of 9.5% from the year-earlier quarter.

Revenue: Rose 11.1% to $10.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Schlumberger Limited was about in line with expectations as the mean analyst estimate of $1.06 per share. Analysts were expecting revenue of $10.41 billion.

Quoting Management: Schlumberger CEO Paal Kibsgaard commented, “Our third-quarter results reflected steady international growth although performance in regional markets varied through activity mix and changes to project schedules. Key markets, both on land and offshore, continued to drive performance as international demand for reservoir characterization and drilling services more than offset weakness in the North America pressure pumping market.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 4.8% and in the first quarter, the figure rose 37.8%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the second quarter, by one cent in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.26 a share to $1.18 over the last ninety days. For the fiscal year, the average estimate has moved down from $4.43 a share to $4.23 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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