Following the oil price collapse in late 2018, Schlumberger Limited. (NYSE: SLB) witnessed a slow start to 2019, both in the U.S. and abroad, according to Raymond James.
While the North American market could recover through the year, international is likely to drive the company’s revenue growth in the back half of 2019, the sell-side firm said Tuesday.
Raymond James’ Praveen Narra maintains a Market Perform rating on Schlumberger.
Schlumberger could beat the low first-quarter expectations, but the reported figures are unlikely to highlight the improving fundamental outlook, Narra said in the note.
The North American market seems to have bottomed and could improve through the year, the analyst said. Activity already started increasing in the first quarter, and a recovery in most regions could boost the company’s second-quarter performance, he said.
A 7.7-percent sequential decline in North American revenue could occur in the first quarter, followed by modest 0.1-percent growth in the second quarter, Narra said. The positive impact of a recovery in volumes will be offset by depressed pricing, the analyst said.
International revenues may be down 2.4 percent in the first quarter, but this is below the normal seasonal decline, Narra said, adding that international revenues are expected to grow 2.4 percent in the second quarter.
Raymond James raised its Schlumberger revenue estimate for 2019 from reflecting a decline of 1 percent to recording 2.6-percent growth.
Schlumberger shares were down 0.11 percent at $44.71 at the time of publication Tuesday.
8 Biggest Price Target Changes For Friday
Benzinga's Top Upgrades, Downgrades For March 15, 2019
Latest Ratings for SLB
|Mar 2019||Goldman Sachs||Initiates Coverage On||Buy|
View More Analyst Ratings for SLB
View the Latest Analyst Ratings
See more from Benzinga
- Wells Fargo Turns Bullish On Exelon, Cites Legislative Tailwinds For Nuclear Energy
- Raymond James Upgrades Jabil On Legal Combo Of Tactical Metric Inflection, Structural Improvements
- Restoration Hardware Analyst Neutral After Q4 Print, Sees 'Widening Competitive Moat'
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.