Leading oilfield services company,
) is set to report its third-quarter 2013 results on Oct 18.
Let's see how things are shaping up prior to the announcement.
In the last quarter, the company's earnings of $1.15 per share
increased 9.5% year over year from $1.05. The quarterly results
were aided by the company's strong international exposure along
with focus on execution and integration capabilities. Also, the
results were ahead of the Zacks Consensus Estimate of $1.11.
Growth Factors this Past Quarter
In the second quarter, Schlumberger recorded total revenue of
$11.18 billion up 8.1% from the year-earlier level of $10.34
billion and ahead of the Zacks Consensus Estimate of $11.11
Schlumberger's overall outlook for 2013 remains largely unchanged
from its earlier projections. The company remains unperturbed
despite the main economies including China, the U.S. and the
Eurozone witnessing mixed fortunes in the second quarter. As a
result both oil and gas prices also are following a sideways
trend in pricing reflecting the mixed nature of the global
Looking forward, Schlumberger's optimism on rising rig count and
customer activity will likely lead to its increased international
spending on exploration, higher production and stepped up
activity in the U.S. Gulf of Mexico. The company also expects
steady growth in key regions that include Sub-Sahara Africa,
Russia, the Middle East, China and Australia.
The oilfield services behemoth believes that strong leverage to
the deepwater segment will aid it performance over the coming
years. While the company makes most of its money outside North
America, it bears the brunt of industry-wide weakness in U.S.
hydraulic fracturing services as well as softness in the land
Our proven model conclusively shows that Schlumberger is likely
to beat earnings estimates this quarter. This is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is the case
here as you will see below.
Zacks ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is +0.81%.
This is because the Most Accurate estimate is at $1.25 while the
Zacks Consensus Estimate currently stands at $1.24.
Zacks Rank: Schlumberger's Zacks Rank #2 (Buy) increases the
predictive power of ESP because the Rank when combined with an
ESP of +0.81% indicates the possibility of positive results. We
caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model
shows these have the right combination of elements to post an
earnings beat this quarter.
Gulfmark Offshore Inc.
), earnings ESP of +3.09% and a Zacks Rank #1 (Strong Buy).
Ocean Rig UDW Inc.
), earnings ESP of +100.00% and a Zacks Rank #1 (Strong Buy).
Stone Energy Corp.
), earnings ESP of +6.76% and a Zacks Rank #1 (Strong Buy).
GULFMARK OFFSHR (GLF): Free Stock Analysis
OCEAN RIG UDW (ORIG): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
SCHLUMBERGER LT (SLB): Free Stock Analysis
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