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Factors Set to Determine the Fate of SLB's Earnings in Q2
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SLB (SLB - Free Report) is set to report second-quarter 2023 earnings on Jul 21, before the opening bell.
In the last reported quarter, the company’s earnings of 63 cents per share (excluding charges and credits) beat the Zacks Consensus Estimate of 61 cents. The results were driven by higher stimulation services across all onshore and offshore areas.
SLB’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.4%. This is depicted in the graph below:
The Zacks Consensus Estimate for second-quarter earnings per share of 71 cents has witnessed one upward movement and two downward revisions over the past 30 days. The estimated figure suggests a 42% improvement from the prior-year reported number.
The Zacks Consensus Estimate for second-quarter revenues of $8.2 billion indicates a 21.7% increase from the year-ago reported figure.
Factors to Consider
In the June-end quarter of this year, oil prices were not healthier than in the prior-year quarter. Hence, the demand for SLB’s oilfield services is likely to have declined. Although not as good as a year ago, the crude price environment was still highly favorable for exploration and production activities. This is likely to have aided SLB’s oilfield service business.
With the implementation of its return-focused technology, SLB has succeeded in building North America’s premium quality oilfield services and equipment operations. The Zacks Consensus Estimate for revenues from North America is pegged at $1,792 million for the second quarter, indicating an increase from the $1,537 million reported in the year-ago period.
Also, the Zacks Consensus Estimate for revenues from the Middle East and Asia is pegged at $2,784 million for the second quarter, indicating an increase from the $2,168 million recorded in the year-ago period.
However, the Zacks Consensus Estimate for income before taxes for SLB’s Digital and Integration division is pegged at $331 million, suggesting a decline from the $379 million posted in the year-ago quarter. This is expected to have affected SLB’s profits in the to-be-reported quarter.
Earnings Whispers
Our proven model does not indicate an earnings beat for SLB 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. That is not the case here, as you will see below.
Earnings ESP: SLB’s Earnings ESP is -0.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
The company is scheduled to release second-quarter earnings on Jul 31. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 24 cents per share, suggesting a decline from the prior-year reported figure.
NuStar Energy, L.P. has an Earnings ESP of +8.82% and is currently a Zacks #2 Ranked player.
The company is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for NS’s earnings is pegged at 17 cents per share, suggesting a decline from the prior-year reported figure.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +15.45% and is a Zacks #3 Ranked player at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 9 cents per share, suggesting a decline from the prior-year reported figure.
Image: Bigstock
Factors Set to Determine the Fate of SLB's Earnings in Q2
SLB (SLB - Free Report) is set to report second-quarter 2023 earnings on Jul 21, before the opening bell.
In the last reported quarter, the company’s earnings of 63 cents per share (excluding charges and credits) beat the Zacks Consensus Estimate of 61 cents. The results were driven by higher stimulation services across all onshore and offshore areas.
SLB’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.4%. This is depicted in the graph below:
Schlumberger Limited Price and EPS Surprise
Schlumberger Limited price-eps-surprise | Schlumberger Limited Quote
Estimate Trend
The Zacks Consensus Estimate for second-quarter earnings per share of 71 cents has witnessed one upward movement and two downward revisions over the past 30 days. The estimated figure suggests a 42% improvement from the prior-year reported number.
The Zacks Consensus Estimate for second-quarter revenues of $8.2 billion indicates a 21.7% increase from the year-ago reported figure.
Factors to Consider
In the June-end quarter of this year, oil prices were not healthier than in the prior-year quarter. Hence, the demand for SLB’s oilfield services is likely to have declined. Although not as good as a year ago, the crude price environment was still highly favorable for exploration and production activities. This is likely to have aided SLB’s oilfield service business.
With the implementation of its return-focused technology, SLB has succeeded in building North America’s premium quality oilfield services and equipment operations. The Zacks Consensus Estimate for revenues from North America is pegged at $1,792 million for the second quarter, indicating an increase from the $1,537 million reported in the year-ago period.
Also, the Zacks Consensus Estimate for revenues from the Middle East and Asia is pegged at $2,784 million for the second quarter, indicating an increase from the $2,168 million recorded in the year-ago period.
However, the Zacks Consensus Estimate for income before taxes for SLB’s Digital and Integration division is pegged at $331 million, suggesting a decline from the $379 million posted in the year-ago quarter. This is expected to have affected SLB’s profits in the to-be-reported quarter.
Earnings Whispers
Our proven model does not indicate an earnings beat for SLB 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. That is not the case here, as you will see below.
Earnings ESP: SLB’s Earnings ESP is -0.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Viper Energy Partners LP (VNOM - Free Report) currently has an Earnings ESP of +12.50% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release second-quarter earnings on Jul 31. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 24 cents per share, suggesting a decline from the prior-year reported figure.
NuStar Energy, L.P. has an Earnings ESP of +8.82% and is currently a Zacks #2 Ranked player.
The company is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for NS’s earnings is pegged at 17 cents per share, suggesting a decline from the prior-year reported figure.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +15.45% and is a Zacks #3 Ranked player at present.
Southwestern is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for SWN’s earnings is pegged at 9 cents per share, suggesting a decline from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.