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- SLB (NYSE:SLB) will announce first-quarter earnings results on Friday, April 19, before the market opens.
- The consensus EPS estimate is $0.75 (+19.0% Y/Y) and the consensus revenue estimate is $8.7 billion (+13.0% Y/Y).
- For the last 2 years, SLB has beaten EPS estimates 100% of the time and exceeded revenue estimates 63% of the time.
- Over the last 3 months, EPS estimates have seen 2 upward and 12 downward revisions. Revenue estimates saw 7 upward and 7 downward revisions.
- The company beat estimates for fourth-quarter adjusted earnings on Jan. 19, driven by strong growth in its international business while North America remained relatively flat.
- SLB has a Quant rating of “JACK“, with a score of 3.14.
- SLB has a sector ranking of 22 out of 47 among oil and gas equipment and services stocks, according to SA’s Quant Ranking.
- Wall Street rates SLB stock”STRONG ACQUIRE” and the authors of Seeking Alpha rate it “BUY”.
- In 2023, SLB shares increased by 3%while the S&P 500 energy sector index fallen 4.8%. The benchmark S&P 500 index increased by 24.2% for the year.
- The stock is down 1.8% so far this year as of Wednesday’s close.
Through the lens of Wall Street
Citi Research says it is “tactically cautious” about the OFS sector in terms of first-quarter earnings due to US gas price weakness weighing on activity and Saudi jackup suspensions.
A BMO Capital Markets report on U.S. energy, released on April 8, said that “oilfield services stocks have lagged year-to-date as Saudi Arabia suspended plans to increase capacity maximum production. This has lowered long-term spending expectations and increased concerns that 2025 will be the peak year for international upstream spending. We expect results in line with the better first quarter results from OFS and will seek to reaffirm the outlook for the 2024, with sustained strength into next year and potentially beyond… We see SLB and BKR as the biggest beneficiaries of a still strong situation. international market, and the Big 3 are only trading at around 60% of historical P/E as per 2025 estimates.”
Recent comment on SLB
SA contributor Daniel Jones wrote in his April 17 report: “SLB revenues grew rapidly, driven by strong drilling activity and increased sales of production systems. The company’s digital and integration businesses have shown slower growth, but overall profitability has increased. Recent acquisitions are interesting and could bode well, but SLB shares are a bit expensive compared to similar companies its ability to generate good upside.”
SA contributor Leo Nelissen, in SLB, wrote in his April 3 report that “the recent merger announcement between Schlumberger and ChampionX marks a significant step in the energy sector, particularly in the utilities segment. This all-stock deal $7.8 billion shows SLB’s strategic expansion into less cyclical and growth manufacturing areas, complemented by ChampionX’s broad presence in North America. The merger aims to leverage technology, particularly in digitalization and artificial intelligence, to improve operational performance and reservoir recovery With expected synergies and shareholder returns, the deal positions SLB for future growth in a recovering energy market.”