Schlumberger's Stock Gains As Profit Tops Expectations, To Offset A Revenue Miss -- MarketWatch

MarketWatch · 10/18 10:57

Shares of Schlumberger Ltd. (SLB) tacked on 1% in premarket trading Friday, after the oil services company reported third-quarter profit that beat expectations but revenue that came up shy, as some international producers exercised "cautious spending" as oil prices fell. Net income rsoe to $1.19 billion, or 83 cents a share, from $1.12 billion, or 78 cents a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of 89 cents topped the FactSet consensus of 88 cents. Revenue grew 10.2% to $9.16 billion, below the FactSet consensus of $9.27 billion, as production systems revenue jumped 31% to $3.1 billion but well construction revenue fell 3% to $3.3 billion. "This performance was achieved despite an environment where short-cycle activity growth softened, and some international producers exercised cautious spending triggered by lower oil prices and ample global supply, while land activity in the U.S. remained subdued," said Chief Executive Olivier Le Peuch. The stock has slumped 15.5% year to date through Thursday, while crude oil futures (CL00) have slipped 2% and the S&P 500 index (SPX) has advanced 22.5%.

-Tomi Kilgore

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October 18, 2024 06:57 ET (10:57 GMT)