Schlumberger Beats Analyst Estimates on EPS

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Schlumberger (NYS: SLB) reported earnings on July 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Schlumberger met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved.


Gross margins improved, operating margins increased, net margins dropped.

Revenue details
Schlumberger booked revenue of $10.45 billion. The 18 analysts polled by S&P Capital IQ predicted sales of $10.43 billion on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $9.62 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.05. The 27 earnings estimates compiled by S&P Capital IQ averaged $1.00 per share. GAAP EPS of $1.05 for Q2 were 7.1% higher than the prior-year quarter's $0.98 per share. (The prior-year quarter included $0.16 per share in earnings from discontinued operations.)

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.2%, 160 basis points better than the prior-year quarter. Operating margin was 18.5%, 220 basis points better than the prior-year quarter. Net margin was 13.4%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.89 billion. On the bottom line, the average EPS estimate is $1.08.

Next year's average estimate for revenue is $43.67 billion. The average EPS estimate is $4.26.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,993 members out of 3,068 rating the stock outperform, and 78 members rating it underperform. Among 611 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 597 give Schlumberger a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Schlumberger is outperform, with an average price target of $86.96.

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The article Schlumberger Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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