Schlumberger Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Schlumberger (NYS: SLB) reported earnings on July 19. 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 expanded. Non-GAAP earnings per share expanded. GAAP earnings per share expanded significantly.


Margins grew across the board.

Revenue details
 Schlumberger chalked up revenue of $11.18 billion. The 24 analysts polled by S&P Capital IQ looked for a top line of $11.12 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $10.45 billion.

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 $1.15. The 31 earnings estimates compiled by S&P Capital IQ predicted $1.10 per share. Non-GAAP EPS of $1.15 for Q2 were 9.5% higher than the prior-year quarter's $1.05 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.) GAAP EPS of $1.57 for Q2 were 50% higher than the prior-year quarter's $1.05 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)

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 28.8%, 690 basis points better than the prior-year quarter. Operating margin was 25.6%, 750 basis points better than the prior-year quarter. Net margin was 17.1%, 370 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $11.62 billion. On the bottom line, the average EPS estimate is $1.21.

Next year's average estimate for revenue is $45.67 billion. The average EPS estimate is $4.66.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,999 members out of 3,082 rating the stock outperform, and 83 members rating it underperform. Among 546 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 529 give Schlumberger a green thumbs-up, and 17 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 $89.83.

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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. The Motley Fool has no position in any of the stocks mentioned. 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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