On Oct. 20, 2006, oil services behemoth Schlumberger (NYSE:SLB) released third-quarter earnings for the period ended Sept. 30, 2006.

  • Revenues and earnings beat estimates by $15 million and four pennies, respectively.
  • Revenues grow 34% to $4.9 billion, thanks to continuing strength in seismic activity and increased demand for drilling services and well-placement technologies.
  • EPS rises 84.1% to $0.81 because of increase in net income by 84.9% to $1 billion.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$4,940

$4,955

$3,698

34%

Net Profit

--

$1,000

$541

84.9%

EPS

$0.77

$0.81

$0.44

84.1%

Diluted Shares

--

1,244

1,232

1%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

32%

25.3%

6.7

Operating Margin

26.4%

19.2%

7.2

Net Margin

20.2%

14.6%

5.6

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$1,901

$3,003

(36.7%)

Other Current Assets

$6,091

$4,769

27.7%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$3,704

$3,122

18.7%

Long-Term Debt

$3,931

$3,744

5%



Learn the ways of the balance sheet.

Cash Flow Highlights

I guess we're going to have to wait for some more pressure to extract a cash flow statement from the wellhead.

Find out why Fools always follow the money.

Related Companies:

  • Baker Hughes (NYSE:BHI)
  • BJ Services (NYSE:BJS)
  • Halliburton (NYSE:HAL)
  • Smith International (NYSE:SII)

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.