Schlumberger(US:SLB)2024-10-21 01:12Investment Rating - The report does not explicitly state an investment rating for Schlumberger (SLB US) [1][2][3] Core Views - Schlumberger's Q3 2024 performance is expected to be positively received by the market, with adjusted net income of $1.507 billion, surpassing consensus estimates [2] - The company reaffirmed its FY2024 adjusted EBITDA growth guidance of approximately 14-15%, with EBITDA margins expected to reach or exceed 25% [2] - Digital & Integration business exceeded expectations with revenue of $386 million, up 23% YoY, and an operating income margin of 35%, higher than the consensus of 32% [3] - Reservoir Performance business underperformed with revenue of $367 million, down 9% YoY, and an operating income margin of 20%, below the consensus of 21% [3] - Well Construction business met expectations with revenue of $3.312 billion, down 3% YoY, and an operating income margin of 22%, in line with consensus [3] - Production Systems business outperformed with revenue of $3.096 billion, up 31% YoY, and an operating income margin of 17%, higher than the expected 16% [3] Financial Performance Summary - Total revenue for Q3 2024 was $9.159 billion, slightly below consensus but up 10% YoY [5] - Adjusted EBITDA for Q3 2024 was $2.343 billion, up 13% YoY, with a margin of 26%, higher than the consensus of 25% [5] - Adjusted net income for Q3 2024 was $1.507 billion, up 34% YoY, with a margin of 16%, higher than the consensus of 14% [5] - Diluted EPS for Q3 2024 was $0.85, up 9% YoY [5] Business Segment Performance - Digital & Integration: Revenue of $1.088 billion, up 11% YoY, with operating income of $386 million, up 23% YoY, and a margin of 35% [5] - Reservoir Performance: Revenue of $1.823 billion, up 9% YoY, with operating income of $367 million, up 7% YoY, and a margin of 20% [5] - Well Construction: Revenue of $3.312 billion, down 3% YoY, with operating income of $714 million, down 6% YoY, and a margin of 22% [5] - Production Systems: Revenue of $3.103 billion, up 31% YoY, with operating income of $519 million, up 63% YoY, and a margin of 17% [5]