Schlumberger's Earnings Preview: Analysts Optimistic Ahead

The report highlights Schlumberger's expected profit increase, driven by robust international revenue growth and successful margin expansion. Despite its year-to-date stock decline, analysts maintain a positive outlook with significant upside potential.

Date: 04-10-2024

AI Rating: 7

Schlumberger Limited is preparing to announce its fiscal Q3 earnings, with analysts projecting an Earnings Per Share (EPS) of $0.89, representing a 14.1% increase from the previous year's $0.78. Such anticipated growth underscores the company's capacity to generate profits effectively in a competitive market.

In the second quarter, Schlumberger reported an EPS of $0.85, exceeding consensus estimates by 2.4%. This growth was attributed to increased international revenue and margin expansion, showcasing the company's operational strengths across various divisions.

For fiscal 2024, projections indicate an EPS of $3.49, presenting a promising 17.1% increase from the $2.98 reported in fiscal 2023. This upward trajectory indicates that Schlumberger is on a solid growth path, which can positively influence investor sentiment and the stock's market performance.

While the stock has experienced a 15.1% decline year-to-date, significantly underperforming broader market indices, recent quarterly earnings have been encouraging. The revenue of $9.14 billion reported for Q2 showed a 13% year-over-year increase, slightly above expectations, and fueled by enhanced operational activity in the Middle East and Asia.

Furthermore, recent market behavior, including a 2.8% rise following a spike in oil prices amid geopolitical tensions, signals potential volatility but also underscores the direct correlation between market dynamics and the stock’s performance. Overall, analysts remain optimistic, with a strong consensus rating that suggests a significant potential price increase ahead.

Stocks: SLB