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Your Two-Minute Earnings Preview for Schlumberger Ltd (SLB) Stock

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Today’s video takes a closer look at Schlumberger Ltd (SLB - Free Report) stock ahead of their third quarter earning report. This company has seen its stock price struggle throughout 2016, as it failed to meet earnings expectations in its fiscal 2016 first quarter for the first time since 2011. SLB quickly recovered, posting above expectations the following quarter.

Historically speaking, SLB usually meets analyst expectations during its earnings reports; a positive aspect investors can look forward to.  Schlumberger’s ability to meet expectations following its disappointing first quarter could be seen as a rebound to investors. To add to this, it is forecasted that SLB will see an increase in their EPS, from its current figure of $0.22 to a projected $0.27 a share, for this upcoming quarter.

However, there still remain many underlying questions for SLB. It’s currently a #4 (Sell)-rated stock on the Zacks Rank, and for good reason. Right now, Schlumberger’s industry—OIL-FIELD SERVICES--sits in the bottom 28% in the Zacks Industry Rank. SLB has seen earnings growth estimates for its current quarter plummet 71.19%, with next quarter’s figure estimated at a loss of 58.64%

The IEA reported an expected decline in oil demand during 2017, resulting in a continuation in oversupplied refineries. This has a direct correlation to Schlumberger’s stock price: If oil prices are likely to stay low, SLB will probably follow suit. This explains why SLB’s VGM score currently sits at an ‘F’, which is a strong indication to sell.

Schlumberger Ltd reports on October 20th before the bell, and we are looking for earnings of $0.27a share. Make sure to watch the video for a quick guide to SLB heading into the report, but if you want to learn more about trading in the earnings season, check out our podcast below:

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