Schlumberger Limited Earnings: Revenue Grows By Double-Digits For Fifth Straight Quarter

The Cheat Sheet

S&P 500 component Schlumberger Limited reported higher profit for the fourth quarter as revenue showed growth. Schlumberger is a global oilfield services company. Through its subsidiaries, it supplies technology, integrated project management and information solutions to consumers in the oil and gas industry.

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Schlumberger Earnings Cheat Sheet for the Fourth Quarter .

Results: Net income for Schlumberger Limited rose to $1.41 billion ($1.05 per share) vs. $1.04 billion (76 cents per share) in the same quarter a year earlier. This marks a rise of 35.6% from the year earlier quarter.

Revenue: Rose 21% to $10.97 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SLB reported adjusted net income of $1.11 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.10 per share. Analysts were expecting revenue of $10.79 billion.

Quoting Management: Schlumberger CEO Paal Kibsgaard commented, “Fourth-quarter results showed solid sequential growth driven by stronger activity both on land and offshore for most Technologies, and stronger product sales for completions, software and multiclient seismic. All Areas and Product Groups grew sequentially.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 49.2%, with the biggest boost coming in the second quarter when revenue rose 62.1% from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 98 cents versus a mean estimate of net income of $1.01 per share.

Margins rose in the third quarter after falling the quarter before. Gross margin rose 0.7 percentage point to 21.3% from the quarter earlier quarter. In the second quarter, the figure rose 0.5 percentage point to 20.9% from the year earlier quarter.

Net income has increased 29.2% year over year on average across the last five quarters. The biggest gain came in the second quarter, when income climbed 63.7% from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from $1.19 per share to $1.09, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $3.65 per share, down from $3.79 ninety days ago.

Competitors to Watch: Halliburton Company , Weatherford Intl. Ltd. , Baker Hughes Incorporated , National-Oilwell Varco, Inc. , Allis-Chalmers Energy Inc. , Complete Production Services, Inc. , Petroleum Geo-Services ASA (PGSVY), TETRA Technologies, Inc. , and Recon Technology, Ltd. .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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