Schlumberger (SLB) To Report Q3 Earnings: What's In Store?
Zacks Investment Research | Oct 16, 2017 09:06PM ET
Oilfield service behemoth Schlumberger Limited (NYSE:SLB) is scheduled to report third-quarter 2017 earnings on Oct 20, before the opening bell.
Last quarter, the company delivered a positive earnings surprise of 16.67%, courtesy of a rebound in drilling activities in Russia and the North Sea. Moreover, Schlumberger delivered an average positive earnings surprise of 7.58% over the last four quarters. Let’s see how things are shaping up prior to the announcement.
Which Way Are Estimates Treading?
Let’s look at the estimate revisions in order to get a clear picture of analyst opinion on the stock before the earnings release.
The Zacks Consensus Estimate of 42 cents for the third quarter has been stable in the last 60 days with three firms being bearish sentiments and seven firms being bullish. The estimate reflects a year-over-year improvement of about 67.1%.
Further, analysts polled by Zacks expect revenues of $7,910 million for the third quarter, up 12.7% from the year-ago quarter.
Factors to Consider
Schlumberger is the largest oilfield services player in the world with access to every energy market. In all its operating business segments, the company maintains its position as one of the key players.
For the Drilling Group segment, The Zacks Consensus Estimate for pretax operating profit is $314 million, significantly higher than $218 million reported in the third quarter of last year.
Moreover, the Zacks Consensus Estimate for the Production Group business unit is pegged at $345 million, way higher than $98 million last year.
However, the Zacks Consensus Estimate for pretax operating income at the Reservoir Characterization segment is $294 million, lower than $322 million reported in the year-ago quarter.
Overall, higher crude price during the third quarter is expected to support oilfield players, involved in the setting up of oil wells.
As per Zacks Investment Research
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