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Schlumberger (SLB) Ticks Down 0.2% Ahead of Earnings: What To Expect
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Shares of Schlumberger (SLB - Free Report) ticked down 0.2% during regular hours Thursday, the last day of trading before it releases its latest quarterly earnings report. Investors displayed apathy ahead of the report, but this is certainly still a stock to watch once the full results are in.
Schlumberger is the largest oilfield services player in the world, with presence in every major energy market. It boasts an attractive reservoir catalog and over 100,000 employees. However, it has comparatively smaller exposure to shale, where more drillers have gathered following a partial recovery in crude prices. Given the firm’s relatively lukewarm Q1 earnings report, eyes will be on Schlumberger to see if it has managed to more effectively capitalize on the recently turbulent but still strong oil market.
According to our latest Zacks Consensus Estimates, analysts expect Schlumberger to report earnings of $0.43 per share on $8.34 billion in revenue. These results would mark year-over-year growth rates of 22.9% and 11.7%, respectively.
Investors should also note that SLB’s consensus earnings projection has trended downward over the course of the quarter. Multiple negative revisions have caused the Zacks Consensus Estimate to tick four cents lower in the past 90 days. The company has also seen negative earnings estimate projections for the following quarter and current fiscal year. However, it has also seen two positive revisions for the following fiscal year, one of which came in the last week. This mixed revision activity has contributed to the stock’s Zacks Rank #3 (Hold).
Looking at share price performance, SLB has essentially traded sideways, losing 0.2% over the past year. The stagnation has continued as of late, with the firm losing 0.8% on a year-to-date basis. More recently, shares have dropped about 3.4% over the trailing 12 weeks.
A strong earnings beat might be what SLB needs in order to break out of its slumber. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
SLB currently has an Earnings ESP of -0.11%. This, combined with its Zacks Rank, leaves us inconclusive about its chances at beating earnings estimates on Friday. Still, it is worth noting that Schlumberger has not missed earnings expectations for 8 quarters in a row.
Make sure to check back here for our full analysis once Schlumberger reports!
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Schlumberger (SLB) Ticks Down 0.2% Ahead of Earnings: What To Expect
Shares of Schlumberger (SLB - Free Report) ticked down 0.2% during regular hours Thursday, the last day of trading before it releases its latest quarterly earnings report. Investors displayed apathy ahead of the report, but this is certainly still a stock to watch once the full results are in.
Schlumberger is the largest oilfield services player in the world, with presence in every major energy market. It boasts an attractive reservoir catalog and over 100,000 employees. However, it has comparatively smaller exposure to shale, where more drillers have gathered following a partial recovery in crude prices. Given the firm’s relatively lukewarm Q1 earnings report, eyes will be on Schlumberger to see if it has managed to more effectively capitalize on the recently turbulent but still strong oil market.
According to our latest Zacks Consensus Estimates, analysts expect Schlumberger to report earnings of $0.43 per share on $8.34 billion in revenue. These results would mark year-over-year growth rates of 22.9% and 11.7%, respectively.
Investors should also note that SLB’s consensus earnings projection has trended downward over the course of the quarter. Multiple negative revisions have caused the Zacks Consensus Estimate to tick four cents lower in the past 90 days. The company has also seen negative earnings estimate projections for the following quarter and current fiscal year. However, it has also seen two positive revisions for the following fiscal year, one of which came in the last week. This mixed revision activity has contributed to the stock’s Zacks Rank #3 (Hold).
Looking at share price performance, SLB has essentially traded sideways, losing 0.2% over the past year. The stagnation has continued as of late, with the firm losing 0.8% on a year-to-date basis. More recently, shares have dropped about 3.4% over the trailing 12 weeks.
A strong earnings beat might be what SLB needs in order to break out of its slumber. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
SLB currently has an Earnings ESP of -0.11%. This, combined with its Zacks Rank, leaves us inconclusive about its chances at beating earnings estimates on Friday. Still, it is worth noting that Schlumberger has not missed earnings expectations for 8 quarters in a row.
Make sure to check back here for our full analysis once Schlumberger reports!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>