Schlumberger’s management is skeptical about a sustained energy market recovery due to deficit cash flow generation and low productivity improvement.
Schlumberger’s (SLB) Drilling segment witnessed the highest revenue fall of 20% in 1Q17—compared to 1Q16. Its Production segment fell ~8%.
Schlumberger released its 1Q17 financial results on April 21, 2017. It recorded total revenues of ~$6.9 billion in 1Q17—up 5.7% from ~$6.5 billion in 1Q16.
Short interest in National Oilwell Varco’s (NOV) stock as a percentage of its float was 6.8% as of April 21, 2017, compared to 6.1% as of December 30, 2016.
On April 21, 2017, National Oilwell Varco’s (NOV) implied volatility was 35.6%.
In this part, we’ll analyze the correlation between National Oilwell Varco’s (NOV) stock price and the West Texas Intermediate (or WTI) crude oil price.
In the past one year, National Oilwell Varco (NOV) stock has risen 21% as of April 21, 2017.
The energy sector contributed to ~6.6% of the S&P 500 (SPY) (SPX-INDEX) on April 21, 2017. Crude oil and natural gas are major parts of the energy sector.
The US Dollar Index rose 0.2% to 99.88 on April 21, 2017. The dollar hit a high of 103.8 on January 3, 2017—the highest level in 14 years.
June WTI (West Texas Intermediate) crude oil (UCO) (RYE) (VDE) futures contracts fell 2.2% and closed at $49.62 per barrel on April 21, 2017.
Gold (GLD) and silver (SLW) were weaker in the early hours as global tensions eased amid Macron’s lead in France’s presidential election.
After falling to the lowest levels since February last week, the United Kingdom’s FTSE 100 index is trading higher in the morning session on Monday.
After falling for two trading days, China’s Shanghai Composite Index started the week on a weaker note. Its price levels fell to a three-month low.
Of the 35 analysts covering Ensco (ESV), three analysts gave “strong buy” recommendations, while eight analysts gave “buy” recommendations.
Along with falling revenues, analysts expect a fall in Ensco’s EBITDA for 1Q17. Analysts estimate that Ensco’s EBITDA could be $156 million in 1Q17.
Wall Street analysts estimate revenues of just over $469 million in 1Q17 for Ensco (ESV)—a fall from revenues of $504 million in 4Q16.
Ensco (ESV) plans to release its 1Q17 results on April 27, 2017, before the market opens. The company plans to hold its conference call the same day.
On April 20, 2017, among the 21 analysts tracking FirstEnergy, 12 recommended it as a “hold,” five recommended it as a “buy,” and two recommended it as a “strong buy.”
FirstEnergy (FE) is trading at an EV-to-EBITDA ratio of 7.8x, while the industry average is near 10x.
On April 20, 2017, FirstEnergy stock was trading 1% and 4% below its 50-day moving average and 200-day moving average, respectively.