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On Jan 19, 2024,Schlumberger (SLB - Free Report) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.84 per share, before the market opened. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.38%. A quarter ago, it was expected that this world's largest oilfield services company would post earnings of $0.77 per share when it actually produced earnings of $0.78, delivering a surprise of 1.30%. Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Schlumberger, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $8.99 billion for the quarter ended December 2023, surpassing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $7.88 billion. The company has topped consensus revenue estimates two times over the last four quarters. Shares surged 2.2% on Jan 19, 2024, reflecting earnings strength.
On Jan 23, 2024, Halliburton Company (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago quarter profit of 72 cents (adjusted). The outperformance reflects strength in the international markets, partly offset by weak performance in the North American region.
Meanwhile, revenues of $5.7 billion were 2.8% higher than the corresponding period of 2022 but came below the Zacks Consensus Estimate (by some $47 million). In good news for investors, Halliburton raised its quarterly dividend by 6.3% to 17 cents per share (or 68 cents per share annualized).
Halliburton — the world’s biggest provider of hydraulic fracking — noted that 2023 turned out to be a great year, with both its segments recording their highest operating margins in over a decade. Looking ahead, the company sees strong demand for oilfield services this year. HAL, which generated an impressive $2.3 billion of free cash flow in 2023, sees the momentum continuing in 2024 as well. Regarding debt retirement, this yea, Halliburton repaid some $300 million to further improve its balance sheet strength.
ETFs in Focus
Investors might want to know the impact of earnings results on ETFs that are heavily invested in these popular oil service companies. Below we highlight three oil-services ETFs with considerable allocation to SLB and HAL that could be in focus:
OIH invests $2.09 billion of assets in about 25 holdings and devotes as much as 20.32% of the portfolio weight to SLB, followed by 11.00% in HAL. Generally, when one stock accounts for as much as 20% of an ETF's weight, its individual performance decides much of the fund’s price movement. OIH gained 6.2% in the past five days (as of Jan 26, 2024).
This ETF invests about $318.3 million of assets in about 15 securities, focusing solely on the energy world. The in-focus SLB takes up the first position here with 22.88% of holdings. HAL takes up the fifth position with about 4.6% of total assets. The fund added 5.7% in the past five days.
XLE invests about $34.93 billion of assets in 26 stocks. The fund puts 4.19% of the portfolio weight in SLB. It added about 5.3% in the past five days.
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Q4 Earnings Put Oil Services ETFs in Focus
On Jan 19, 2024,Schlumberger (SLB - Free Report) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.84 per share, before the market opened. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.38%. A quarter ago, it was expected that this world's largest oilfield services company would post earnings of $0.77 per share when it actually produced earnings of $0.78, delivering a surprise of 1.30%. Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Schlumberger, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $8.99 billion for the quarter ended December 2023, surpassing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $7.88 billion. The company has topped consensus revenue estimates two times over the last four quarters. Shares surged 2.2% on Jan 19, 2024, reflecting earnings strength.
On Jan 23, 2024, Halliburton Company (HAL - Free Report) reported fourth-quarter 2023 adjusted net income per share of 86 cents, surpassing the Zacks Consensus Estimate of 80 cents and well above the year-ago quarter profit of 72 cents (adjusted). The outperformance reflects strength in the international markets, partly offset by weak performance in the North American region.
Meanwhile, revenues of $5.7 billion were 2.8% higher than the corresponding period of 2022 but came below the Zacks Consensus Estimate (by some $47 million). In good news for investors, Halliburton raised its quarterly dividend by 6.3% to 17 cents per share (or 68 cents per share annualized).
Halliburton — the world’s biggest provider of hydraulic fracking — noted that 2023 turned out to be a great year, with both its segments recording their highest operating margins in over a decade. Looking ahead, the company sees strong demand for oilfield services this year. HAL, which generated an impressive $2.3 billion of free cash flow in 2023, sees the momentum continuing in 2024 as well. Regarding debt retirement, this yea, Halliburton repaid some $300 million to further improve its balance sheet strength.
ETFs in Focus
Investors might want to know the impact of earnings results on ETFs that are heavily invested in these popular oil service companies. Below we highlight three oil-services ETFs with considerable allocation to SLB and HAL that could be in focus:
VanEck Vectors Oil Services ETF (OIH - Free Report)
OIH invests $2.09 billion of assets in about 25 holdings and devotes as much as 20.32% of the portfolio weight to SLB, followed by 11.00% in HAL. Generally, when one stock accounts for as much as 20% of an ETF's weight, its individual performance decides much of the fund’s price movement. OIH gained 6.2% in the past five days (as of Jan 26, 2024).
iShares US Oil Equipment & Services ETF (IEZ - Free Report)
This ETF invests about $318.3 million of assets in about 15 securities, focusing solely on the energy world. The in-focus SLB takes up the first position here with 22.88% of holdings. HAL takes up the fifth position with about 4.6% of total assets. The fund added 5.7% in the past five days.
Energy Select Sector SPDR Fund (XLE - Free Report)
XLE invests about $34.93 billion of assets in 26 stocks. The fund puts 4.19% of the portfolio weight in SLB. It added about 5.3% in the past five days.