Uncovering Potential: SLB's Earnings Preview
SLB (NYSE:SLB) is gearing up to announce its quarterly earnings on Friday, 2025-04-25. Here's a quick overview of what investors should know before the release.
Analysts are estimating that SLB will report an earnings per share (EPS) of $0.73.
SLB bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Past Earnings Performance
The company's EPS beat by $0.02 in the last quarter, leading to a 0.0% drop in the share price on the following day.
Here's a look at SLB's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.90 | 0.88 | 0.83 | 0.69 |
| EPS Actual | 0.92 | 0.89 | 0.85 | 0.75 |
| Price Change % | 6.0% | -5.0% | 2.0% | -2.0% |
Tracking SLB's Stock Performance
Shares of SLB were trading at $34.03 as of April 23. Over the last 52-week period, shares are down 29.94%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Observations about SLB
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding SLB.
With 5 analyst ratings, SLB has a consensus rating of Outperform. The average one-year price target is $52.4, indicating a potential 53.98% upside.
Peer Ratings Overview
In this analysis, we delve into the analyst ratings and average 1-year price targets of Baker Hughes, Halliburton and TechnipFMC, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Baker Hughes, with an average 1-year price target of $52.4, suggesting a potential 53.98% upside.
- Analysts currently favor an Outperform trajectory for Halliburton, with an average 1-year price target of $29.33, suggesting a potential 13.81% downside.
- Analysts currently favor an Outperform trajectory for TechnipFMC, with an average 1-year price target of $39.33, suggesting a potential 15.57% upside.
Analysis Summary for Peers
In the peer analysis summary, key metrics for Baker Hughes, Halliburton and TechnipFMC are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Schlumberger | Outperform | 3.27% | $1.96B | 5.14% |
| Baker Hughes | Outperform | -12.72% | $1.53B | 2.36% |
| Halliburton | Outperform | -3.44% | $1.03B | 1.95% |
| TechnipFMC | Outperform | 13.94% | $387M | 7.07% |
Key Takeaway:
SLB ranks first in revenue growth among its peers. It also leads in gross profit and return on equity.
All You Need to Know About SLB
SLB is the world's premier oilfield-services company as measured by market share. While the industry is mostly fragmented, SLB holds the first or second competitive position in many of the differentiated oligopolies it operates in. Also known as Schlumberger, the company was founded in 1926 by two brothers bearing the same last name. Today it's most known as a global industry leader in innovation, while it focuses its strategy on its three growth engines: its core, digital, and new energy businesses. Over three fourths of its revenue base is tied to international markets, while the company boasts roughly $3 billion in digital-related revenue.
Financial Insights: SLB
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Positive Revenue Trend: Examining SLB's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.27% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.
Net Margin: SLB's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.79% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): SLB's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.14%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): SLB's ROA stands out, surpassing industry averages. With an impressive ROA of 2.22%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: SLB's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.57.
To track all earnings releases for SLB visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.