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Is a Beat in Store for Schlumberger (SLB) in Q2 Earnings?
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Schlumberger Limited (SLB - Free Report) is set to report second-quarter 2022 results on Jul 22, before the opening bell.
In the last reported quarter, the oilfield service provider reported earnings of 34 cents per share, beating the Zacks Consensus Estimate of 32 cents. The quarterly results were primarily driven by strong drilling activities in North America, Latin America and the Middle East. Higher evaluation and intervention activities across the international offshore markets also buoyed the company’s first-quarter results.
In the trailing four quarters, Schlumberger beat the Zacks Consensus Estimate for earnings thrice and met the same once, delivering an earnings surprise of 6.7%, on average. This is depicted in the graph below:
Let’s see how things have shaped up prior to the announcement.
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings per share of 40 cents has witnessed three upward revisions and no downward movement in the past 30 days. The consensus estimate suggests an increase of 33.3% from the year-ago reported figure.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $6.3 billion indicates an 11.4% year-over-year improvement.
Earnings Whispers
Our proven model conclusively predicts an earnings beat for Schlumberger this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Schlumberger has an Earnings ESP of +1.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Schlumberger currently carries a Zacks Rank #2.
Factors to Consider
In the June-end quarter of this year, the price of oil was significantly higher than the year-ago comparable quarter. The significant improvement was primarily backed by Russia’s aggressive invasion of Ukraine. Higher oil price was favorable for exploration and production activities, which have likely driven the demand for Schlumberger’s oilfield services.
In the second quarter, the total rig count in oil resources was considerably higher year over year, confirming enhanced upstream activities. With higher exploration operations, the demand for oilfield services was favorable in the second quarter, as oilfield service players help upstream companies efficiently set up oil wells.
The company is likely to have benefited from a more profitable international market in the second quarter. The Zacks Consensus Estimate for revenues from Latin America is pegged at $1,227 million, indicating an increase from $1,057 million reported in the year-ago period. Also, the Zacks Consensus Estimate for revenues from North America is pegged at $1,351 million, indicating an increase from $1,083 million recorded in the year-ago period.
The Zacks Consensus Estimate for income before taxes for Schlumberger’s Well Construction division is pegged at $407 million, suggesting a considerable improvement from $272 million posted in the year-ago quarter.
Other Stocks That Warrant a Look
Here are some other companies from the Energy space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for BP’s earnings is pegged at $2 per share, suggesting a significant increase from the prior-year reported figure.
EQT Corporation (EQT - Free Report) has an Earnings ESP of +59.49% and is currently a Zacks #3 Ranked player.
EQT Corp is scheduled to release second-quarter results on Jul 27. The Zacks Consensus Estimate for EQT’s earnings is pegged at 54 cents per share, suggesting an increase of 671.4% from the prior-year reported figure.
Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +10.22% and currently sports a Zacks Rank #1.
Valero Energy is scheduled to release second-quarter earnings on Jul 28. The Zacks Consensus Estimate for Valero Energy’s earnings is pegged at $8.78 per share, suggesting a massive increase from the prior-year reported figure.
Image: Bigstock
Is a Beat in Store for Schlumberger (SLB) in Q2 Earnings?
Schlumberger Limited (SLB - Free Report) is set to report second-quarter 2022 results on Jul 22, before the opening bell.
In the last reported quarter, the oilfield service provider reported earnings of 34 cents per share, beating the Zacks Consensus Estimate of 32 cents. The quarterly results were primarily driven by strong drilling activities in North America, Latin America and the Middle East. Higher evaluation and intervention activities across the international offshore markets also buoyed the company’s first-quarter results.
In the trailing four quarters, Schlumberger beat the Zacks Consensus Estimate for earnings thrice and met the same once, delivering an earnings surprise of 6.7%, on average. This is depicted in the graph below:
Schlumberger Limited Price and EPS Surprise
Schlumberger Limited price-eps-surprise | Schlumberger Limited Quote
Let’s see how things have shaped up prior to the announcement.
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings per share of 40 cents has witnessed three upward revisions and no downward movement in the past 30 days. The consensus estimate suggests an increase of 33.3% from the year-ago reported figure.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $6.3 billion indicates an 11.4% year-over-year improvement.
Earnings Whispers
Our proven model conclusively predicts an earnings beat for Schlumberger this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Schlumberger has an Earnings ESP of +1.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Schlumberger currently carries a Zacks Rank #2.
Factors to Consider
In the June-end quarter of this year, the price of oil was significantly higher than the year-ago comparable quarter. The significant improvement was primarily backed by Russia’s aggressive invasion of Ukraine. Higher oil price was favorable for exploration and production activities, which have likely driven the demand for Schlumberger’s oilfield services.
In the second quarter, the total rig count in oil resources was considerably higher year over year, confirming enhanced upstream activities. With higher exploration operations, the demand for oilfield services was favorable in the second quarter, as oilfield service players help upstream companies efficiently set up oil wells.
The company is likely to have benefited from a more profitable international market in the second quarter. The Zacks Consensus Estimate for revenues from Latin America is pegged at $1,227 million, indicating an increase from $1,057 million reported in the year-ago period. Also, the Zacks Consensus Estimate for revenues from North America is pegged at $1,351 million, indicating an increase from $1,083 million recorded in the year-ago period.
The Zacks Consensus Estimate for income before taxes for Schlumberger’s Well Construction division is pegged at $407 million, suggesting a considerable improvement from $272 million posted in the year-ago quarter.
Other Stocks That Warrant a Look
Here are some other companies from the Energy space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
BP plc (BP - Free Report) has an Earnings ESP of +8.64% and is Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for BP’s earnings is pegged at $2 per share, suggesting a significant increase from the prior-year reported figure.
EQT Corporation (EQT - Free Report) has an Earnings ESP of +59.49% and is currently a Zacks #3 Ranked player.
EQT Corp is scheduled to release second-quarter results on Jul 27. The Zacks Consensus Estimate for EQT’s earnings is pegged at 54 cents per share, suggesting an increase of 671.4% from the prior-year reported figure.
Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +10.22% and currently sports a Zacks Rank #1.
Valero Energy is scheduled to release second-quarter earnings on Jul 28. The Zacks Consensus Estimate for Valero Energy’s earnings is pegged at $8.78 per share, suggesting a massive increase from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.