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Schlumberger Beats Q3 Earnings Estimates, Shares Fall on Revenue Miss

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Schlumberger stock has fallen 1.6 percent in premarket trading today after the company released its third-quarter earnings results. Its earnings beat analysts’ average estimate, but its revenue missed their forecast.

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When did Schlumberger report its earnings?

Schlumberger reported its third-quarter 2020 financial results today before the market opened. The company will hold its earnings conference call at 8:30 a.m. ET. Investors can access a live webcast and replay of the event on the company’s investor relations website.

Schlumberger Earnings Call
Source: Pixabay
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Schlumberger’s earnings report highlights

In the third quarter, Schlumberger reported adjusted EPS of $0.16, compared with $0.43 in the third quarter of 2019. The adjusted EPS beat analysts’ average estimate of $0.12. Schlumberger's sales came in 38.4 percent lower YoY (year-over-year) at $5.26 billion, missing analysts’ average estimate of $5.38 billion.

In Schlumberger's press release, CEO Olivier Le Peuch said, “Our results in the third quarter clearly demonstrate our focus on execution, returns, and customer performance. Margins expanded sequentially while pretax segment operating income and adjusted EBITDA grew 45% and 21%, respectively, highlighting notable progress in the reset of our earnings power and further demonstrating our execution capabilities as we transition to our new organization.”

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In the third quarter, Schlumberger’s North American revenue fell 59 percent YoY to $1.16 billion, and its Latin American revenue fell 30 percent YoY to $0.7 billion. The company’s European, CIS (Commonwealth of Independent States), and African revenue fell 32 percent YoY to $1.4 billion, and its Middle Eastern and Asian revenue fell 22 percent YoY to $2.0 billion.

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Source: Pixabay
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What is Schlumberger’s stock price today?

Schlumberger stock was down about 1.6 percent at $16.15 in premarket trading today as of 7:12 a.m. ET. The stock rose 3 percent on Oct. 15 and closed at $16.42 with a market capitalization of $22.8 billion. Schlumberger stock has risen by 1.2 percent in the last five days, but has fallen by 49.2 percent in the last year. The stock is trading 60.1 percent below its 52-week high of $41.14 and 38.3 percent above its 52-week low of $11.87.

What is Schlumberger’s dividend yield?

As of Oct. 15, Schlumberger’s dividend yield was 3.18 percent. Currently, the company pays an annual dividend of $0.50 per share. Schlumberger’s most recent quarterly dividend payment was made to stockholders of record on Oct. 8.

What is Schlumberger’s stock forecast?

Currently, Wall Street analysts' stock price forecast for Schlumberger is $23.46, which suggests a 42.9 percent upside. The highest target price of $30 indicates an 82.7 percent upside, while the lowest target price of $12 indicates a 26.9 percent downside. Among the 37 analysts covering Schlumberger, 26 suggest "buy," and 11 suggest "hold." None of the analysts recommend "sell."

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