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Is a Beat in Store for Schlumberger (SLB) in Q3 Earnings?
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Schlumberger Limited (SLB - Free Report) is set to report third-quarter 2022 results on Oct 21, before the opening bell.
In the last reported quarter, the oilfield service provider’s earnings of 50 cents per share (excluding charges and credits) beat the Zacks Consensus Estimate of 40 cents. The quarterly results were primarily driven by higher sales of exploration data licensing and strong drilling activities in land and offshore resources in North America and the international market.
In the trailing four quarters, Schlumberger beat the Zacks Consensus Estimate for earnings thrice and met the same once, delivering an earnings surprise of 9.1%, 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 third-quarter earnings per share of 55 cents has witnessed three upward revisions and no downward movement in the past 30 days. The consensus estimate suggests an increase of 52.8% from the year-ago reported figure.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $7.1 billion indicates a 22.2% 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 +0.23%. 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
Oil prices were significantly higher in the September-end quarter of this year. The strong oil price scenario was favorable for exploration and production activities, which have likely driven the demand for Schlumberger’s oilfield services.
In the third quarter, the total rig count in oil resources was considerably higher year over year, confirming enhanced upstream activities. With higher exploration activities, the demand for oilfield services is expected to have been favorable in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from North America is pegged at $1,579 million, indicating an increase from $1,129 million reported in the year-ago period. Also, the Zacks Consensus Estimate for revenues from the Middle East and Asia is pegged at $2,367 million, indicating an increase from $2,034 million recorded in the year-ago period.
The Zacks Consensus Estimate for income before taxes for Schlumberger’s Well Construction division is pegged at $512 million, suggesting a considerable improvement from $345 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:
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
EQT Corporation (EQT - Free Report) has an Earnings ESP of +24.28% and is currently a Zacks #2 Ranked player.
EQT Corp is scheduled to release third-quarter results on Oct 26. The Zacks Consensus Estimate for EQT’s earnings is pegged at $1.11 per share, suggesting a massive improvement from the prior-year reported figure.
Chevron Corporation (CVX - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank #2.
Chevron is scheduled to release third-quarter earnings on Oct 28. The Zacks Consensus Estimate for CVX’s earnings is pegged at $5.06 per share, suggesting a massive increase from the prior-year reported figure.
Image: Bigstock
Is a Beat in Store for Schlumberger (SLB) in Q3 Earnings?
Schlumberger Limited (SLB - Free Report) is set to report third-quarter 2022 results on Oct 21, before the opening bell.
In the last reported quarter, the oilfield service provider’s earnings of 50 cents per share (excluding charges and credits) beat the Zacks Consensus Estimate of 40 cents. The quarterly results were primarily driven by higher sales of exploration data licensing and strong drilling activities in land and offshore resources in North America and the international market.
In the trailing four quarters, Schlumberger beat the Zacks Consensus Estimate for earnings thrice and met the same once, delivering an earnings surprise of 9.1%, 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 third-quarter earnings per share of 55 cents has witnessed three upward revisions and no downward movement in the past 30 days. The consensus estimate suggests an increase of 52.8% from the year-ago reported figure.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $7.1 billion indicates a 22.2% 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 +0.23%. 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
Oil prices were significantly higher in the September-end quarter of this year. The strong oil price scenario was favorable for exploration and production activities, which have likely driven the demand for Schlumberger’s oilfield services.
In the third quarter, the total rig count in oil resources was considerably higher year over year, confirming enhanced upstream activities. With higher exploration activities, the demand for oilfield services is expected to have been favorable in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from North America is pegged at $1,579 million, indicating an increase from $1,129 million reported in the year-ago period. Also, the Zacks Consensus Estimate for revenues from the Middle East and Asia is pegged at $2,367 million, indicating an increase from $2,034 million recorded in the year-ago period.
The Zacks Consensus Estimate for income before taxes for Schlumberger’s Well Construction division is pegged at $512 million, suggesting a considerable improvement from $345 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:
Equinor ASA (EQNR - Free Report) has an Earnings ESP of +25.07% and is a Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinor is scheduled to report third-quarter results on Oct 28. The Zacks Consensus Estimate for EQNR’s earnings is pegged at $1.78 per share, suggesting a significant increase from the prior-year reported figure.
EQT Corporation (EQT - Free Report) has an Earnings ESP of +24.28% and is currently a Zacks #2 Ranked player.
EQT Corp is scheduled to release third-quarter results on Oct 26. The Zacks Consensus Estimate for EQT’s earnings is pegged at $1.11 per share, suggesting a massive improvement from the prior-year reported figure.
Chevron Corporation (CVX - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank #2.
Chevron is scheduled to release third-quarter earnings on Oct 28. The Zacks Consensus Estimate for CVX’s earnings is pegged at $5.06 per share, suggesting a massive increase from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.