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What Do Analysts Expect from Schlumberger’s 4Q17 Earnings?

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Schlumberger’s 4Q17 earnings estimates

In 3Q17, analysts expect an adjusted EPS (earnings per share) of ~$0.45 for Schlumberger (SLB). Wall Street analysts expect Schlumberger’s adjusted earnings to rise 7% in 4Q17 from its adjusted earnings of $0.42 per share in 3Q17. Management bets primarily on global crude oil demand growth, which it expects will help improve Schlumberger’s 4Q17 earnings. Schlumberger will hold its 4Q17 earnings conference call on January 19, 2018.

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From 3Q16 through 3Q17, Schlumberger’s adjusted earnings rose 68%. It reflects the higher rig count and pricing recovery due to stronger energy drilling and production activities. Schlumberger accounts for 0.42% of the SPDR S&P 500 ETF (SPY). SPY rose 19% in the past year—compared to Schlumberger’s 18% fall during this period. The S&P 500 Index (SPX-INDEX) rose 19% in the past year.

In 3Q17, Schlumberger’s adjusted EPS marginally exceeded analysts’ consensus EPS. On average, the adjusted EPS exceeded the consensus EPS by ~6% in the past 13 quarters until 3Q17.

Analysts’ estimates for Schlumberger’s peers

In comparison, Halliburton’s (HAL) 4Q17 adjusted earnings are expected to rise 10% compared to 3Q17. Wall Street analysts expect National Oilwell Varco (NOV) to cut its adjusted loss in 4Q17—compared to its adjusted loss of $0.07 in 3Q17. TechnipFMC’s (FTI) 4Q17 adjusted earnings are expected to rise 12%—compared to its adjusted earnings in 3Q17.

In this series

In this series, we’ll discuss Schlumberger’s outlook, value drivers, and what the sell-side analysts suggest for Schlumberger. Next, we’ll discuss management’s outlook in past quarters.

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