Does the Street Have Schlumberger Figured out?

Seth Jayson, The Motley Fool
Updated

Schlumberger (NYS: SLB) is expected to report Q2 earnings around July 20. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Schlumberger's revenues will improve 8.5% and EPS will improve 14.9%.

The average estimate for revenue is $10.44 billion. On the bottom line, the average EPS estimate is $1.00.


Revenue details
Last quarter, Schlumberger recorded revenue of $10.61 billion. GAAP reported sales were 22% higher than the prior-year quarter's $8.72 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
Last quarter, non-GAAP EPS came in at $0.98. GAAP EPS of $0.97 for Q1 were 41% higher than the prior-year quarter's $0.69 per share.

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

Recent performance
For the preceding quarter, gross margin was 20.1%, 100 basis points better than the prior-year quarter. Operating margin was 16.7%, 160 basis points better than the prior-year quarter. Net margin was 12.3%, 150 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $43.41 billion. The average EPS estimate is $4.23.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,992 members out of 3,069 rating the stock outperform, and 77 members rating it underperform. Among 593 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 579 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 $89.97.

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The article Does the Street Have Schlumberger Figured out? 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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