The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Schlumberger met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins expanded across the board.
Schlumberger booked revenue of $10.61 billion. The 20 analysts polled by S&P Capital IQ expected a top line of $10.65 billion on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $10.23 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.08. The 30 earnings estimates compiled by S&P Capital IQ predicted $1.07 per share. GAAP EPS of $1.07 for Q3 were 11% higher than the prior-year quarter's $0.96 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 22.2%, 130 basis points better than the prior-year quarter. Operating margin was 18.6%, 120 basis points better than the prior-year quarter. Net margin was 13.4%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $11.14 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $42.86 billion. The average EPS estimate is $4.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,980 members out of 3,059 rating the stock outperform, and 79 members rating it underperform. Among 620 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 605 give Schlumberger a green thumbs-up, and 15 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 $87.87.
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