Leading oilfield services company,
) is set to report first-quarter 2014 results on Apr 17. Let's
see how things are shaping up prior to the announcement.
In the last quarter, the company's earnings of $1.35 per share
increased approximately 30% year over year from $1.04. The
results were boosted by the company's strong international
exposure and focus on execution and integration capabilities.
Also, the results were ahead of the Zacks Consensus Estimate of
Growth Factors this Past Quarter
Schlumberger expects first-quarter 2014 earnings per share (EPS)
to be higher year over year. The bullishness of the company stems
from higher market share and an improving cost structure. In a
smart move, the company targeted state-owned and independent
energy companies that are spending significantly to develop shale
and other resources around the world, rather than multinational
energy companies, most of which are cutting spending.
Schlumberger's optimism on rising rig count activity will likely
lead to 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 the key regions of
Sub-Sahara Africa, Russia, the Middle East, China and Australia.
Schlumberger generates about two-thirds of its revenues
internationally, marking the highest ratio among the biggest
oilfield service providers, which include
). Schlumberger's strength also lies in effective implementation,
strong contracts and new technologies.
The oilfield services behemoth believes that strong leverage to
the deepwater segment will help it to perform well 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 coiled-tubing business.
Our proven model does not conclusively show that Schlumberger is
likely to beat earnings this quarter because a stock needs to
have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3
for that to happen. It is not the case here, as you will see
Zacks ESP: The Earnings ESP for Schlumberger is 0.00% since the
Most Accurate estimate stands at $1.20, in line with the Zacks
Zacks Rank: Schlumberger's Zacks Rank #3 (Hold) has little effect
on the predictive power of ESP because this rank when combined
with a 0.00% ESP makes surprise prediction difficult.
HALLIBURTON CO (HAL): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
PIONEER EGY SVC (PES): Free Stock Analysis
SCHLUMBERGER LT (SLB): Free Stock Analysis
To read this article on Zacks.com click here.
Other Stocks to Consider
Here are some companies you may want to consider as our model
shows that these have the right combination of elements to post
an earnings beat this quarter.
Helmerich & Payne Inc.
), earnings ESP of +2.72% and a Zacks Rank #1 (Strong Buy).
Pioneer Energy Services Corp.
), earnings ESP of +33.33% and a Zacks Rank #1.