Valued at a market cap of $54.1 billion, Schlumberger Limited (SLB) is a global leader in oilfield services and energy technology. With a presence in major oilfield markets worldwide, the company provides advanced hydrocarbon exploration, drilling, production optimization, and carbon management solutions. The Houston, Texas-based company is expected to announce its fiscal Q4 earnings results before the market opens on Friday, Jan. 17.
Ahead of this event, analysts expect the world's largest oilfield services firm to report a profit of $0.91 per share, up 5.8% from the previous year's $0.86 per share. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, SLB exceeded the consensus EPS estimate by 1.1%.
For fiscal 2024, analysts expect SLB to report an EPS of $3.39, an increase of 13.8% from $2.98 in fiscal 2023. Looking forward to fiscal 2025, the company’s EPS is projected to grow 5% year-over-year to $3.56.
Over the past 52 weeks, SLB has declined 26.3%, significantly lagging behind the S&P 500 Index's ($SPX) 23.3% gain and the Energy Select Sector SPDR Fund's (XLE) 2.2% rise over the same period.
Shares of Schlumberger dropped 4.7% on Oct. 18 due to mixed Q3 results that highlighted revenue of $9.2 billion, which missed analysts' expectations. Despite a 13% rise in profit and an adjusted EPS of $0.89 beating consensus, the company issued a muted revenue growth outlook for Q4, citing cautious spending by producers amid weak oil prices. The softening of short-cycle activity and subdued North American land activity further dampened investor sentiment. Additionally, slower international revenue growth, the lowest in a year, compounded concerns, pulling shares lower.
However, analysts' consensus view on SLB stock is bullish, with a "Strong Buy" rating. Out of 25 analysts covering the stock, 18 give a "Strong Buy," three have a "Moderate Buy," and four give a "Hold" rating. This configuration is slightly less bullish than three months ago, with 19 “Strong Buy” ratings on the stock. Currently, SLB is trading below the average analyst price target of $56.09.
