Schlumberger 3Q Revenue Likely to Be Around Last Year's -- Earnings Preview
October 17 2019 - 3:55PM
Dow Jones News
By Dave Sebastian
Schlumberger Ltd. (SLB) is scheduled to report results for its
fiscal third quarter premarket on Friday. Here is what you need to
know:
EARNINGS FORECAST: Analysts on average expect profit of 40 cents
a share, according to FactSet. Analysts expect Schlumberger to
report adjusted earnings of 41 cents a share. The company will hold
its investor call at 8:30 a.m. ET.
REVENUE FORECAST: Analysts expect sales of $8.5 billion, which
is about flat compared with the same period last year, according to
FactSet.
WHAT TO WATCH:
NEW CEO: The oilfield-service company named Olivier Le Peuch its
new chief executive in July. Mr. Le Peuch has said shale companies
are increasingly focused on avoiding parent-child well problems,
which is when wells are drilled too closely, and one siphons
production off the other. This is leading to increased demand for
Schlumberger's products that help mitigate the issue, seen as a
primary reason shale wells aren't producing as much as forecast.
Cowen analysts said in a note Monday that they are looking for more
specificity beyond a "foreseeable future" and a double-digit free
cash flow margin, both of which are part of the Mr. Le Peuch's
strategy.
NORTH AMERICA BUSINESS: Schlumberger's North American business
has been hurt in recent quarters by a cutback in spending by U.S.
shale drillers. The company has estimated that U.S. producers have
cut spending in 2019 by about 10%, but that has been offset by
efficiency gains enabling drillers to get more oil with less
spending. It has also said it expects international exploration and
production investment to grow 7% to 8% in 2019.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 17, 2019 15:40 ET (19:40 GMT)
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