Schlumberger, Limited Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Schlumberger, Limited (NYSE:SLB) will unveil its latest earnings on Friday, October 21, 2011. 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, Limited Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.02 per share, a rise of 45.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1. Between one and three months ago, the average estimate moved up. It has dropped from $1.05 during the last month. Analysts are projecting profit to rise by 32.9% versus last year to $3.80.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 87 cents per share against a mean estimate of net income of 85 cents per share. In the first quarter, it missed forecasts by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $10.27 billion in revenue this quarter, a rise of 50.1% from the year ago quarter. Analysts are forecasting total revenue of $39.56 billion for the year, a rise of 44.1% from last year’s revenue of $27.45 billion.

Analyst Ratings: Analysts are bullish on this stock with 21 analysts rating it as a buy, none rating it as a sell and three rating it as a hold.

A Look Back: In the second quarter, profit rose 63.7% to $1.34 billion (98 cents a share) from $818 million (68 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 62.1% to $9.62 billion from $5.94 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 50.4%, with the biggest boost coming in the most recent quarter when revenue rose 62.1% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 40.5% in the first quarter and 31% in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During July 22, 2011 to October 17, 2011, the stock price had fallen $25.99 (-27.8%) from $93.51 to $67.52. The stock price saw one of its best stretches over the last year between October 19, 2010 and November 4, 2010 when shares rose for 13-straight days, rising 20.1% (+$12.52) over that span. It saw one of its worst periods between July 25, 2011 and August 4, 2011 when shares fell for nine-straight days, falling 14.7% (-$13.86) over that span. Shares are down $15.24 (-18.4%) year to date.

(Source: Xignite Financials)

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