Schlumberger Ltd. (NYSE: SLB) reported second-quarter 2013 results before markets opened this morning. The oil field services firm posted adjusted diluted quarterly earnings per share (EPS) of $1.15 on revenues of $11.18 billion. In the same period a year ago, Schlumberger reported EPS of $1.01 and revenues of $10.37 billion. This morning’s results also compare to the consensus estimates for EPS of $1.10 on revenues of $11.11 billion.

Income from continuing operations totaled $1.66 a share, compared with $0.99 in the second quarter of 2012. Schlumberger said it has now completed its exit from Iran and that all results of that business have been reclassified as discontinued operations, including $0.09 a share in the second quarter.

The company did not provide guidance in its press release, but the consensus estimate for the third quarter calls for EPS of $1.21 on revenues of $11.56 billion. For the full year, EPS is pegged at $4.65 and revenues at $45.58 billion. The full-year EPS estimate has fallen by $0.02 since Schlumberger reported first-quarter earnings, and the revenue estimate has decreased by $40 million.

The company’s CEO said:

The soft global economic picture has changed little since the first quarter. The U.S. has shown virtually no impact from the financial sequester, the Eurozone remains in recession, and data from China continue to be mixed. Given the lack of change, supply and demand for both oil and natural gas remain stable, which is also reflected in oil and gas prices. E&P spending, however, has been revised upwards making this year the fourth consecutive year of double-digit spending increases and pointing to the long-term nature of oil and gas developments.

The company will exhaust its $8 billion share repurchase plan in the third quarter, and the board has approved a new buyback plan of $10 billion that will run through June 2018.

Sequential international revenue growth of 6% outpaced North American growth of 2%. In North America, revenue was down slightly, from $3.38 billion in the second quarter of 2012 to $3.36 billion. Drilling onshore in the U.S. posted a double-digit increase.

Shares are up 2.5% in premarket trading this morning, at $80.50 in a 52-week range of $66.85 to $82.00. Thomson Reuters had a consensus analyst price target of around $90.40 before today’s results were announced.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.