Schlumberger beats Wall Street estimates in the fiscal first quarter

Schlumberger Ltd. (NYSE: SLB) reported its financial results for the fiscal first quarter on Friday that topped analysts’ estimates for earnings and revenue, despite the ongoing COVID-19 disruptions.

Schlumberger shares slid just under 2% in premarket trading on Friday but jumped about 4% on market open. Including the price action, the stock is now exchanging hands at £18.59 per share. In comparison, it had started the year at a per-share price of a lower £15.83. If you want to invest in the stock market online, you will need a reliable stockbroker – here is a list of the top few to make selection easier for you.

Schlumberger’s Q1 financial results versus analysts’ estimates

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Schlumberger said that its net income in the first quarter came in at £215.61 million that translates to 15.14 pence per share. In the same quarter last year, its net income stood at a higher £269.69 million, or 19.47 pence per share.

The oilfield services company reported £3.77 billion of revenue in Q1 versus the year-ago figure of £3.99 billion. According to FactSet, experts had forecast the company to post £3.67 billion of revenue. Their estimate for per-share earnings was capped at a lower 13.70 pence. The news comes a day after Boston Beer reported its quarterly financial results.

Schlumberger offloaded some of its businesses in North America in the prior quarter (Q4). Revenue from these businesses was valued at £205.51 million in the fourth quarter and £475.20 million in the comparable quarter of the previous year. The decline in revenue in the first quarter, therefore, was attributed to the divestiture.

Excluding the impact of divestitures, Schlumberger said that its revenue remained unchanged sequentially and saw a 23% decline on a year over year basis. The Houston-based firm had recorded £273.81 million of net income in Q4.

Chief Executive Olivier Le Peuch’s comments on Friday

CEO Olivier Le Peuch commented on the earnings report on Friday and said:  

“Looking ahead, we continue to be encouraged by constructive macroeconomic drivers. While the world is still grappling with COVID-19 infection rates, vaccination programs and fiscal stimulus packages are expected to support a rebound of economic activity and oil demand recovery through the year.”

Schlumberger performed largely downbeat in the stock market last year with an annual decline of close to 50%. At the time of writing, the NYSE-listed firm has a market capitalisation of £25.92 billion.