uploads///EPS Estimates

Schlumberger’s Adjusted Earnings Beat Estimates in 2Q15

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Jul. 23 2015, Published 11:56 a.m. ET

2Q15 adjusted earnings

In 2Q15, Schlumberger’s (SLB) adjusted net earnings per share (or EPS) of $0.88 beat estimated EPS of $0.79 by 11%. As noted in the graph below, Schlumberger’s adjusted earnings exceeded Wall Street analysts’ consensus estimates in some of the quarters in the past. On an average, adjusted EPS has exceeded consensus EPS by ~4% in the past nine quarters.

Between 2Q13 and 2Q15, Schlumberger’s adjusted EPS has decreased 23%. Adjusted EPS decreased by 36% from 2Q14 to 2Q15.

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2Q15 adjusted revenues

In 2Q15, adjusted and Wall Street analysts’ consensus estimated revenues nearly matched. Adjusted revenues fell short of analysts’ consensus estimates by just 0.5%. On an average, adjusted revenues have almost matched consensus estimates in the past nine quarters.

Between 2Q13 and 2Q15, Schlumberger’s adjusted revenues have decreased 19%. Meanwhile, from 2Q14 to 2Q15, adjusted revenues decreased 25%. In the next part of the series, we’ll discuss the company’s 2Q15 financial results in greater depth.

Share price is down

Schlumberger (SLB) released its financial information for 2Q15 on July 16, 2015. Its stock had a slightly negative reaction immediately following the earnings release. Schlumberger’s share price decreased by 0.3% to $83.71 the day after its latest earnings, from $83.89 on July 16. Its share price has declined ~1% since January 1 this year.

Many other major oilfield service and equipment providers’ shares have decreased since the beginning of 2015. Weatherford International’s (WFT) shares decreased 4%, while National Oilwell Varco’s (NOV) shares declined 34% year-to-date. Ensco’s (ESV) shares followed NOV’s closely with a 37% fall during the same period. Combined, ESV, WFT, and NOV account for 12.1% of the VanEck Vectors Oil Services ETF (OIH). OIH has gone down 11% during 2015.

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