Schlumberger Ltd Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth
S&P 500 (NYSE:SPY) component Schlumberger Limited (NYSE:SLB) reported higher profit for the second quarter as revenue showed growth. Schlumberger Limited 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 Cheat Sheet for the Second Quarter
Results: Net income for Schlumberger Limited rose to $1.34 billion (71 cents per share) vs. $818 million (68 cents per share) in the same quarter a year earlier. This marks a rise of 64.3% from the year earlier quarter.
Revenue: Rose 62% to $9.62 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: SLB fell short of the mean analyst estimate of 85 cents per share. It beat the average revenue estimate of $9.17 billion.
Quoting Management: Schlumberger Chairman and CEO Andrew Gould commented, “Second-quarter results showed strong growth worldwide. All Product Groups grew at double-digit rates. In North America, a prolonged Canadian spring break-up and poor weather in the northwest were offset by very strong growth in the rest of US land and a significant contribution from deepwater operations as the rig count increased and renewed interest in exploration activity in the Gulf of Mexico led to high multiclient seismic data sales.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 40.5% and in the fourth quarter of the last fiscal year, the figure rose 31%.
Gross margin shrank 2.3 percentage points to 20.6%. The contraction appeared to be driven by increased costs, which rose 66.9% from the year earlier quarter while revenue rose 62%.
Revenue has risen the past four quarters. Revenue increased 55.7% to $8.72 billion in the first quarter. The figure rose 57.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 26.1% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 6 cents with net income of 71 cents versus a mean estimate of net income of 77 cents per share.
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).
(Source: Xignite Financials)