Schlumberger Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Schlumberger, Limited (NYSE:SLB) will unveil its latest earnings on Friday, July 22, 2011. 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. Oil ETFs: The Top 10 Exchange Traded Funds for Your Oil Investing List>>

Schlumberger, Limited Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 85 cents per share, a rise of 25% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 90 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 85 cents during the last month. For the year, analysts are projecting net income of $3.72 per share, a rise of 30.1% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported profit of 71 cents per share against a mean estimate of 77 cents. Two quarters ago, it beat expectations by 8 cents with net income of 85 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $9.17 billion in revenue this quarter, a rise of 54.4% from the year ago quarter. Analysts are forecasting total revenue of $38.3 billion for the year, a rise of 39.5% from last year’s revenue of $27.45 billion.

Analyst Ratings: Analysts are bullish on this stock with 25 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 40.5% while it rose 31% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 55.7% to $8.72 billion in first quarter. The figure rose 57.9% in the fourth quarter of the last fiscal year from the year earlier, climbed 26.1% in the third quarter of the last fiscal year from the year-ago quarter and 7.4% in the second 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 June 17, 2011 to July 18, 2011, the stock price had risen $5.42 (6.6%) from $81.79 to $87.21. 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% (+$12.55) over that span. It saw one of its worst periods between August 17, 2010 and August 26, 2010 when shares fell for eight-straight days, falling 11.4% (-$6.77) over that span. Shares are up $4.19 (+5%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!