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Schlumberger (SLB) Up 5.9% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Schlumberger Limited (SLB - Free Report) . Shares have added about 5.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is SLB due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
First-Quarter 2018 Results
Schlumberger Limited’s first-quarter 2018 earnings of 38 cents per share (eliminating charges and credits) were in line with the Zacks Consensus Estimate. The bottom line rose from the year-earlier figure of 25 cents.
Total revenues of $7,829 million improved from the year-ago level of $6,894 million but failed to beat the Zacks Consensus Estimate of $7,852 million.
Surge in North American directional land drilling operations and awards for Integrated Production Services (IPS) contracts supported the first-quarter results. This was offset partially by operations related to Testing Services in Qatar, Egypt and Brazil.
Segmental Performance
Each of the groups — Reservoir Characterization, Drilling Group and Production Group — recorded a year-over-year rise in earnings.
Drilling Group results increased primarily on contributions from the North American directional land drilling works.
Results at the Production Group were mostly buoyed by IPS contracts. Higher North American activities also supported the outperformance.
The Reservoir Characterization segment was affected by lower Russian Wireline activity along with a drop in sales of Software Integrated Solutions. However, the negative was partially offset by operations related to Testing Services in Qatar, Egypt and Brazil.
Reservoir Characterization: Revenues totaled $1,556 million compared with $1,618 million in the year-earlier quarter. Pre-tax operating income grossed $307 million, up 9% year over year.
Drilling Group: Revenues of $2,126 million rose 7% year over year. Moreover, pre-tax operating income was $293 million, up 28% year over year.
Production Group: Revenues at this group increased 35% from the year-earlier quarter to $2,959 million. Pre-tax operating income skyrocketed 96% year over year to $216 million.
Cameron Group: This segment generated revenues of $1,310 million, up 7% year over year. Pre-tax operating income rose 2% from the prior-year period to $166 million.
Financials
As of Mar 31, 2018, the company had approximately $4,165 million in cash and short-term investments and $13,526 million in long-term debt. This represents a debt-to-capitalization ratio of 32.7%. In the January-to-March quarter, the company bought back 1.4 million shares.
Guidance
For 2018, the company projects investments of $2 billion, almost in line with the 2017 and 2016 figures.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There have been three revisions higher for the current quarter compared to four lower.
At this time, SLB has a subpar Growth Score of D, however its Momentum is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, SLB has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Schlumberger (SLB) Up 5.9% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Schlumberger Limited (SLB - Free Report) . Shares have added about 5.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is SLB due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
First-Quarter 2018 Results
Schlumberger Limited’s first-quarter 2018 earnings of 38 cents per share (eliminating charges and credits) were in line with the Zacks Consensus Estimate. The bottom line rose from the year-earlier figure of 25 cents.
Total revenues of $7,829 million improved from the year-ago level of $6,894 million but failed to beat the Zacks Consensus Estimate of $7,852 million.
Surge in North American directional land drilling operations and awards for Integrated Production Services (IPS) contracts supported the first-quarter results. This was offset partially by operations related to Testing Services in Qatar, Egypt and Brazil.
Segmental Performance
Each of the groups — Reservoir Characterization, Drilling Group and Production Group — recorded a year-over-year rise in earnings.
Drilling Group results increased primarily on contributions from the North American directional land drilling works.
Results at the Production Group were mostly buoyed by IPS contracts. Higher North American activities also supported the outperformance.
The Reservoir Characterization segment was affected by lower Russian Wireline activity along with a drop in sales of Software Integrated Solutions. However, the negative was partially offset by operations related to Testing Services in Qatar, Egypt and Brazil.
Reservoir Characterization: Revenues totaled $1,556 million compared with $1,618 million in the year-earlier quarter. Pre-tax operating income grossed $307 million, up 9% year over year.
Drilling Group: Revenues of $2,126 million rose 7% year over year. Moreover, pre-tax operating income was $293 million, up 28% year over year.
Production Group: Revenues at this group increased 35% from the year-earlier quarter to $2,959 million. Pre-tax operating income skyrocketed 96% year over year to $216 million.
Cameron Group: This segment generated revenues of $1,310 million, up 7% year over year. Pre-tax operating income rose 2% from the prior-year period to $166 million.
Financials
As of Mar 31, 2018, the company had approximately $4,165 million in cash and short-term investments and $13,526 million in long-term debt. This represents a debt-to-capitalization ratio of 32.7%. In the January-to-March quarter, the company bought back 1.4 million shares.
Guidance
For 2018, the company projects investments of $2 billion, almost in line with the 2017 and 2016 figures.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. There have been three revisions higher for the current quarter compared to four lower.
Schlumberger Limited Price and Consensus
Schlumberger Limited Price and Consensus | Schlumberger Limited Quote
VGM Scores
At this time, SLB has a subpar Growth Score of D, however its Momentum is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, SLB has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.