Schlumberger Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Schlumberger (NYSE:SLB) will unveil its latest earnings tomorrow, Friday, January 18, 2013. 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.

Schlumberger Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.09 per share, a decline of 1.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.16. Between one and three months ago, the average estimate moved down. It also has dropped from $1.13 during the last month. For the year, analysts are projecting profit of $4.18 per share, a rise of 14.2% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of $1.08 a share versus the estimate of profit of $1.06 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit rose 9.5% to $1.42 billion ($1.07 a share) from $1.3 billion (96 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.7% to $10.61 billion from $10.23 billion.

Here’s how Schlumberger traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Analyst Ratings: With 23 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts are projecting a decline of 1.1% in revenue from the year-earlier quarter to $10.85 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 37.8% in the first quarter and 4.8% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 21% in the fourth quarter of the last fiscal year, 21.7% in the first quarter and 8.6% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.99 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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