Factors Likely to Determine the Fate of SLB in Q3 Earnings
SLB SLB is set to report third-quarter 2023 earnings on Oct 20, before the opening bell.
In the last reported quarter, the company’s earnings of 72 cents per share (excluding charges and credits) beat the Zacks Consensus Estimate of 71 cents. The results were driven by higher stimulation services and strong activities across all areas.
SLB’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.5%. This is depicted in the graph below:
Schlumberger Limited Price and EPS Surprise
Schlumberger Limited price-eps-surprise | Schlumberger Limited Quote
Estimate Trend
The Zacks Consensus Estimate for third-quarter earnings per share of 77 cents has witnessed one downward revision over the past 30 days. The estimated figure suggests a 22.2% improvement from the prior-year reported number.
The Zacks Consensus Estimate for third-quarter revenues of $8.3 billion indicates an 11.4% increase from the year-ago reported figure.
Factors to Consider
The pricing scenario of oil and natural gas was impressive in the third quarter of this year. Per data provided by the U.S. Energy Information Administration (“EIA”), the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.
Like oil, natural gas prices in the September quarter were healthier than in the second quarter, aiding the exploration and production activities of the major energy players. This is likely to have boosted SLB’s well construction and reservoir performance activities.
The Zacks Consensus Estimate for pretax operating income for Well Construction is pegged at $756 million, suggesting an improvement from a year-ago figure of $664 million. The Zacks Consensus Estimate for pretax operating income for reservoir performance stands at $338 million, indicating an increase from a year-ago figure of $244 million.
Earnings Whispers
Our proven model does not indicate an earnings beat for SLB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: SLB’s Earnings ESP is -1.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are some firms that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:
Viper Energy Partners LP VNOM currently has an Earnings ESP of +28.20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 38 cents per share, suggesting a decline from the year-ago figure.
Antero Resources Corporation AR has an Earnings ESP of +91.67% and is currently a Zacks #3 Ranked player.
The company is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for AR’s loss is pegged at 6 cents per share.
BP plc BP has an Earnings ESP of +1.85% and is a Zacks #3 Ranked player at present.
BP is scheduled to release third-quarter results on Oct 31. The Zacks Consensus Estimate for BP’s earnings is pegged at $1.35 per share, suggesting a decline from the year-ago figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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BP p.l.c. (BP) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
Antero Resources Corporation (AR) : Free Stock Analysis Report
Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
