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Understanding Schlumberger (SLB) Reliance on International Revenue
ZACKSยท 2025-10-21 14:16
Core Insights - Schlumberger's total revenue for the quarter ending September 2025 was $8.93 billion, reflecting a year-over-year decline of 2.5% [4] - The company's international revenue streams are crucial for assessing its financial resilience and growth prospects [2][3] International Revenue Breakdown - Latin America contributed $1.48 billion, accounting for 16.6% of total revenue, with a surprise decline of -2.91% compared to analyst expectations of $1.53 billion [5] - Middle East & Asia generated $3 billion, representing 33.6% of total revenue, with a surprise decline of -1.04% against expectations of $3.03 billion [6] - Europe & Africa provided $2.43 billion, making up 27.3% of total revenue, exceeding the consensus estimate of $2.41 billion by +1.02% [7] Future Revenue Expectations - Analysts project Schlumberger's revenues for the current fiscal quarter to reach $9.5 billion, an increase of 2.3% year-over-year, with expected contributions of 17.3% from Latin America ($1.65 billion), 34.4% from Middle East & Asia ($3.26 billion), and 27% from Europe & Africa ($2.56 billion) [8] - For the full year, total annual revenue is expected to be $35.47 billion, a decrease of 2.3% compared to the previous year, with projected contributions of 17.4% ($6.16 billion) from Latin America, 34.5% ($12.25 billion) from Middle East & Asia, and 27% ($9.58 billion) from Europe & Africa [9] Market Performance and Outlook - The reliance on international markets presents both opportunities and challenges for Schlumberger, making it essential to track international revenue trends for future projections [10] - The company's current Zacks Rank is 4 (Sell), indicating potential underperformance in the near term [12] - Over the past month, Schlumberger's stock has declined by 1.4%, while the Zacks S&P 500 composite increased by 1.2% [13]