The 10-second takeaway
For the quarter ended March 31 (Q1), Schlumberger met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew. GAAP earnings per share dropped.
Gross margins dropped, operating margins were steady, net margins dropped.
Schlumberger logged revenue of $10.67 billion. The 21 analysts polled by S&P Capital IQ expected revenue of $10.69 billion on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $9.92 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 $1.01. The 32 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share. Non-GAAP EPS of $1.01 for Q1 were 3.1% higher than the prior-year quarter's $0.98 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.94 for Q1 were 3.1% lower than the prior-year quarter's $0.97 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.1%, 10 basis points worse than the prior-year quarter. Operating margin was 17.5%, much about the same as the prior-year quarter. Net margin was 11.8%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $11.18 billion. On the bottom line, the average EPS estimate is $1.11.
Next year's average estimate for revenue is $45.84 billion. The average EPS estimate is $4.67.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 3,012 members out of 3,093 rating the stock outperform, and 81 members rating it underperform. Among 550 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 533 give Schlumberger a green thumbs-up, and 17 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 $91.10.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.
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