Schlumberger Earnings: Surges Past Analyst Estimates

Schlumberger Limited (NYSE:SLB) exceeded Wall Street analyst estimates on both the top and bottom line. Both wins are positive signs to shareholders seeking to preserve their confidence in the company’s performance. Shares are up 0.72%.

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Schlumberger Limited Earnings Cheat Sheet

Results: Net income decreased -3.75% to $1.36 billion ($1.08 per diluted share) in the quarter versus a net gain of $1.41 billion in the year-earlier quarter.

Revenue: Rose 1.46% to $11.17 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Schlumberger Limited reported adjusted net income of $1.08 per share. By that measure, the company beat the mean analyst estimate of $1.07. It beat the average revenue estimate of $10.82 billion.

Quoting Management: “We capped the year with revenues of over $42 billion, up by 14%, with the International Areas growing by $4 billion, or 16%, their strongest growth by far since 2008. International grew from robust exploration and development activity, both offshore and in key land markets…

…In North America, we demonstrated our resiliency from the challenges of the land markets by growing the business by more than $1 billion, or 9%, aided by our strong position in the offshore market, particularly in the US Gulf of Mexico. In addition, full-year pretax operating income grew 14%, with International delivering a 31% increase leading to International margins expanding 226 basis points to reach 20.5%, higher than North American margins of 20.3%,” stated Schlumberger CEO Paal Kibsgaard.

Key Stats:

Revenue increased 5.3% from $10.61 billion in the previous quarter. Net income decreased 4.49% from $1.42 billion in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.09 to a profit $1.02. For the current year, the average estimate has moved down from a profit of $4.23 to a profit of $4.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)