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Schlumberger: What to Expect from Its Q4 Earnings

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Schlumberger’s fourth-quarter results

Schlumberger (SLB) is scheduled to report its fourth-quarter results on January 18. Analysts expect its EPS to fall ~25% to $0.36 from $0.48 per share in the fourth quarter of 2017—a 22% sequential fall. The company’s revenues are estimated to fall ~2% year-over-year to $8.0 billion in the fourth quarter. Schlumberger met or beat its EPS estimates in all of the past nine quarters.

The softness in Schlumberger’s North America operations might continue to hamper the company’s results in the fourth quarter. Permian Basin takeaway constraints have impacted the fracturing activity in the region. The above graph shows Schlumberger’s adjusted EPS compared to the consensus estimates over ten quarters.

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Stock performance

Schlumberger stock has fallen ~47% in the last 12 months. A fall in the fourth-quarter earnings might impact the stock’s performance. Halliburton (HAL), Baker Hughes (BHGE), and National Oilwell Varco (NOV) have fallen 43%, 37%, and 26%, respectively, during the same period.

Halliburton is scheduled to report its fourth-quarter results on January 22. Baker Hughes is scheduled to report its results on January 31. National Oilwell Varco is scheduled to report its results on February 6. Together, Schlumberger, Halliburton, Baker Hughes, and National Oilwell Varco form 45.5% of the VanEck Vectors Oil Services ETF (OIH).

Next, we’ll discuss how Schlumberger’s segments might perform in the fourth quarter.

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