Schlumberger Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Schlumberger (NYSE:SLB) will unveil its latest earnings on Friday, October 19, 2012. 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 estimate of analysts is for profit of $1.06 per share, a rise of 8.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from $1.10 during the last month. Analysts are projecting profit to rise by 16.7% versus last year to $4.27.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of $1.05 per share versus a mean estimate of profit of $1 per share.

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Stock Price Performance: Between September 17, 2012 and October 15, 2012, the stock price dropped $4.38 (-5.7%), from $77.14 to $72.76. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 6.4% (+$4.52) over that span. It saw one of its worst periods between May 7, 2012 and May 18, 2012 when shares fell for 10 straight days, dropping 9.3% (-$6.54) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 4.9% in revenue from the year-earlier quarter to $10.73 billion.

A Look Back: In the second quarter, profit rose 4.8% to $1.4 billion ($1.05 a share) from $1.34 billion (98 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.6% to $10.45 billion from $9.62 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 35.5% in the fourth quarter of the last fiscal year and 37.8% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 49.4% in the third quarter of the last fiscal year, 21% in the fourth quarter of the last fiscal year and 21.7% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 24 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.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.83 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. The company regressed in this liquidity measure from 1.97 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.7% to $11.53 billion while assets decreased 1.2% to $21.04 billion.

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

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