The 10-second takeaway
For the quarter ended March 31 (Q1), Schlumberger met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Schlumberger tallied revenue of $10.61 billion. The 19 analysts polled by S&P Capital IQ foresaw revenue of $10.54 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $8.72 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.98. The 27 earnings estimates compiled by S&P Capital IQ anticipated $0.98 per share on the same basis. GAAP EPS of $0.97 for Q1 were 41% higher than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.5%, 150 basis points better than the prior-year quarter. Operating margin was 17.0%, 190 basis points better than the prior-year quarter. Net margin was 12.2%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.93 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $45.05 billion. The average EPS estimate is $4.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,985 members out of 3,064 rating the stock outperform, and 79 members rating it underperform. Among 649 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 636 give Schlumberger a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Schlumberger is outperform, with an average price target of $89.97.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Schlumberger. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.