Schlumberger Limited Earnings: Here’s Why Investors Like These Results

Schlumberger Limited (NYSE:SLB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.14%.

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Schlumberger Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.06% to $1.01 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Rose 0.09% to $10.67 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Schlumberger Limited reported adjusted EPS income of $1.01 per share. By that measure, the company beat the mean analyst estimate of $0.99. It missed the average revenue estimate of $10.74 billion.

Quoting Management: Schlumberger CEO Paal Kibsgaard commented, “International strength, in combination with resilience to challenging market conditions in North America, led to solid performance in the first quarter. While our sequential results displayed the effects of the normal seasonal slowdown in the Northern Hemisphere and the Far East, as well as lower product sales compared to the fourth quarter, our year-on-year figures demonstrated the potential of the international market, the strength of our execution, and the importance of our integration capabilities.”

Key Stats (on next page)…

Revenue decreased 5.98% from $11.35 billion in the previous quarter. EPS decreased 6.48% from $1.08 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 $1.13 to a profit $1.11. For the current year, the average estimate has moved down from a profit of $4.81 to a profit of $4.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)