Schlumberger (NYSE: SLB) is set to release its third-quarter earnings results on Friday before the market opens. The oilfield services provider’s bottom line will be hurt by higher costs and expenses while high offshore exploration-led activity will continue to drive the top line.
The company continued to be hurt by the negative sentiment towards the oil & gas industry, which tends to be highly sensitive due to the global economic slowdown. The oilfield services industry continues to face low capacity utilization and depressed margins due to lower exploration and production capital expenditure.
The oil market sentiments are expected to remain balanced for Schlumberger. For 2019, the oil demand forecast has been lowered slightly on trade ware concerns and global geopolitical tensions but the company does not anticipate a change in the structural demand outlook for the mid-term.
On the supply side, Schlumberger continues to see US shale oil as the only near-to-medium-term source of global production growth, albeit at a slow rate, as exploration & production operators continue to transition from growth to cash and returns, with consequent restraining effects on investment levels.
The results will be hurt by slowing production growth in the US despite rebounding international capital expenditure. However, the company will be benefited from the normalization of international activity relative to North America.
Analysts expect the company’s earnings to plunge by 13% to $0.40 per share while revenue remained virtually unchanged at $8.5 billion for the third quarter. The results matched the analysts’ expectations thrice in the past four quarters. The majority of the analysts recommended a “buy” rating with an average price target of $45.60.
For the second quarter, Schlumberger posted a 14% jump in earnings driven by lower costs and expenses as well as the exclusion of the previous year’s workforce reduction charges. The results were benefited by double-digit growth in the Mexico & Central America GeoMarket due to high offshore exploration-led activity for the IOCs and increased Integrated Drilling Services (IDS) onshore activity.
Most Popular
Earnings Preview: What to look for when Netflix (NFLX) reports Q4 2025 results
Netflix, Inc. (NASDAQ: NFLX) is expected to report Q4 results on January 20, amid expectations for strong revenue and earnings growth. The company is navigating a shifting streaming landscape where
What to look for when United Airlines (UAL) reports its Q4 2025 earnings results
Shares of United Airlines (NASDAQ: UAL) stayed red on Thursday. The stock has gained 15% over the past three months. The airline is scheduled to report its earnings results for
Infographic: How Constellation Brands (STZ) performed in Q3 2026
Constellation Brands, Inc. (NYSE: STZ) reported net sales of $2.22 billion for the third quarter of 2026, down 10% year-over-year. Organic net sales were down 2%. Net income attributable to
Comments
Comments are closed.