Core Viewpoint - SLB is expected to report first-quarter 2025 results on April 25, with adjusted earnings anticipated to show a slight decline compared to the previous year, despite a favorable crude pricing environment supporting upstream investments [1][2][5]. Earnings Performance - In the last reported quarter, SLB's adjusted earnings were 92 cents per share, exceeding the Zacks Consensus Estimate of 90 cents, driven by broad-based earnings growth and margin expansion, particularly in the Middle East and Asia [1]. - SLB has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 1.8% [1]. Earnings Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is 74 cents, reflecting a 1.3% decline from the prior year's reported figure [2]. - Revenue estimates stand at $8.6 billion, indicating a 1.2% decrease from the previous year [2]. Market Conditions - Favorable crude prices have been reported, with West Texas Intermediate spot prices averaging $75.74, $71.53, and $68.24 per barrel for January, February, and March respectively, supporting exploration and production activities [3]. - Increased upstream investments are expected to boost demand for SLB's services, particularly in reservoir optimization and well construction [4]. Industry Trends - While drilling activity in the North American land market has been subdued, international drilling activity has shown modest growth, especially in the Middle East, which is likely to benefit SLB's earnings [4]. - A strong focus on global energy security and increased spending on exploration and production are anticipated to positively impact SLB's profitability in the upcoming quarter [5]. Earnings Expectations - SLB has an Earnings ESP of +0.20%, indicating a potential earnings beat, supported by a Zacks Rank of 3 (Hold) [6].

Core Insights - Analysts project Schlumberger (SLB) will report quarterly earnings of $0.74 per share, a decline of 1.3% year over year, with revenues expected to reach $8.6 billion, down 1.2% from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.9% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Revenue from Digital & Integration is estimated at $988.06 million, reflecting a year-over-year increase of 3.7% [5] - Revenue from Reservoir Performance is projected at $1.73 billion, indicating a slight increase of 0.2% from the prior year [5] - Revenue from Production Systems is expected to reach $2.97 billion, showing a year-over-year growth of 5.2% [5] - Revenue from Well Construction is forecasted at $3.03 billion, representing a significant decline of 10% year over year [6] - North America revenue is estimated at $1.60 billion, a 0.4% increase from the previous year [6] - Latin America revenue is projected at $1.50 billion, reflecting a decline of 9.2% year over year [6] - Revenue from Europe & Africa is expected to be $2.28 billion, down 1.9% year over year [7] - Revenue from the Middle East & Asia is projected at $3.13 billion, indicating a year-over-year increase of 1.5% [7] Income Before Taxes Estimates - Income Before Taxes from Digital & Integration is estimated at $292.93 million, up from $254 million in the same quarter last year [8] - Income Before Taxes from Reservoir Performance is projected at $334.53 million, slightly down from $339 million year over year [8] - Income Before Taxes from Production Systems is expected to be $438.85 million, an increase from $400 million in the previous year [9] - Income Before Taxes from Well Construction is estimated at $586.44 million, down from $690 million year over year [9] Stock Performance - Schlumberger shares have decreased by 17% in the past month, compared to an 8.9% decline in the Zacks S&P 500 composite [9]

The market expects Schlumberger (SLB) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

Industry Overview - The Zacks Oil and Gas - Field Services industry is facing a challenging outlook due to a volatile pricing environment for commodities, driven by rising trade tensions and strict capital management by upstream energy firms, which is diminishing the demand for oilfield services [1][4] - Companies in this sector must navigate the evolving landscape of energy transition to succeed, as failing to meet energy transition objectives could adversely impact their cash flow [1][6] - The industry comprises companies providing support services to exploration and production players, including manufacturing, repairing, and maintaining wells, drilling equipment, and seismic testing [3] Current Trends - The demand for oilfield services is closely tied to exploration and production activities, making companies like SLB and Halliburton susceptible to the uncertainties caused by volatile oil and gas prices, particularly due to the US-China trade war [4] - There has been a slowdown in drilling activities as upstream players prioritize stockholder returns over boosting output, leading to lower demand for oilfield services [5] - Companies must efficiently tackle the decarbonization of oil and gas operations while adopting low-carbon technologies to navigate the energy transition successfully [6] Industry Performance - The Zacks Oil and Gas - Field Services industry currently holds a Zacks Industry Rank of 149, placing it in the bottom 40% of over 250 Zacks industries, indicating a bearish outlook [7][8] - Over the past year, the industry has declined by 27.1%, significantly underperforming the S&P 500, which rose by 4.7%, and the broader Zacks Oil - Energy sector, which declined by 15.2% [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 5.45X, compared to the S&P 500's 15.53X and the sector's 4.14X, indicating a lower valuation relative to the broader market [13] - Historically, the industry has traded as high as 12.87X and as low as 1.10X over the past five years, with a median of 8.24X [13] Company Insights - Archrock's acquisition of Total Operations and Production Services significantly expands its capacity and improves margins, positioning it as a leader in electrified natural gas compression [15] - Baker Hughes has a diverse business portfolio across natural gas, LNG, and clean energy, which secures steady earnings despite operational volatility, and is expanding its global presence [18] - SLB's diversified portfolio and leadership in digital technology position it for sustained growth, even as upstream investments moderate [20] - Halliburton is focusing on key growth areas that could contribute $2.5 to $3 billion in annual revenues within the next three to five years, despite industry challenges [21]

SLB (SLB) , a global oilfield services firm, has announced a collaboration with the British energy giant Shell plc (SHEL) . Under this partnership, SLB will deploy the Petrel subsurface software across Shell’s global asset base. The Petrel subsurface software, developed by SLB, is a powerful tool for exploration and production that enables its users to analyze subsurface data and gain more information about the reservoir.The software will be aimed at enhancing Shell’s digital competencies. The adoption of t ...

Core Insights - SLB has secured a significant drilling contract from Woodside Energy for the ultra-deepwater Trion development offshore Mexico, involving the drilling of 18 ultra-deepwater wells over three years with AI-enabled capabilities to enhance operational efficiency and well quality [1][2] Group 1: Contract Details - The contract includes an integrated services approach, covering digital directional drilling services, logging while drilling (LWD), surface logging, cementing, drilling and completion fluids, completions, and wireline services, with water depths reaching up to 2,500 meters [2] - SLB's expertise in ultra-deepwater drilling and advanced AI-driven technologies will ensure safe, efficient, and reliable development of the Trion wells, with a focus on local talent and supply chains in Mexico to meet project timelines [3] Group 2: Operational Efficiency - SLB's Performance Live digital service delivery centers will manage operations, optimizing drilling performance through real-time data analytics and AI-driven automation, aiming to minimize downtime and enhance precision in well construction [4] Group 3: Strategic Importance - The contract is a crucial step in advancing the Trion project's drilling phase, reinforcing SLB's strategic presence in Mexico's offshore energy sector, with first production expected in 2028 [6]

Core Insights - The article discusses Schlumberger's strategic growth prospects, capital returns to shareholders, and attractive valuation, despite the stock declining by 3.5% since the last coverage [2]. Group 1: Company Overview - Schlumberger is highlighted for its focus on strategic growth and capital returns to shareholders, indicating a commitment to enhancing shareholder value [2]. Group 2: Market Performance - The stock of Schlumberger has experienced a decline of 3.5% since the last analysis, suggesting that the market has not yet aligned with the positive growth thesis presented [2].

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] - The author holds long positions in several major companies including XOM, NVDA, AMZN, META, and GOOGL [1]

Company Performance - Schlumberger's stock closed at $39.08, reflecting a -1.86% change from the previous session, underperforming the S&P 500's daily loss of 1.22% [1] - Over the last month, Schlumberger's shares decreased by 0.85%, outperforming the Oils-Energy sector's loss of 3.38% and the S&P 500's loss of 2.31% [1] Upcoming Earnings - The upcoming earnings disclosure is anticipated, with projected earnings per share (EPS) of $0.74, indicating a 1.33% decrease from the same quarter last year [2] - Revenue is expected to be $8.63 billion, reflecting a 0.84% decline from the same quarter last year [2] Annual Estimates - For the annual period, earnings are estimated at $3.38 per share and revenue at $38.63 billion, showing shifts of -0.88% and +6.45% respectively from the previous year [3] - Recent changes in analyst estimates suggest evolving short-term business trends, with positive revisions indicating analyst optimism regarding the company's profitability [3] Valuation Metrics - Schlumberger's Forward P/E ratio is currently 11.78, which is a discount compared to its industry's Forward P/E of 13.9 [6] - The PEG ratio stands at 9.42, significantly lower than the average PEG ratio of 1.66 for the Oil and Gas - Field Services industry [6] Industry Context - The Oil and Gas - Field Services industry is part of the Oils-Energy sector, holding a Zacks Industry Rank of 140, placing it in the bottom 45% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - The article emphasizes a favorable risk versus reward perspective for potential investments, particularly highlighting the methodology that attracts successful investors [1] - There is an indication of a potential long position in SLB, suggesting a positive outlook on the stock's future performance [1] Group 2 - The disclosures mention that past performance does not guarantee future results, indicating a cautious approach to investment recommendations [2] - The article clarifies that no specific investment advice is being provided, and the views expressed may not represent the entire platform's stance [2]