The world’s largest oil field services firm, Schlumberger Ltd. (NYSE: SLB) issued an update on fourth-quarter operations that lowers the company’s earnings per share (EPS) forecast by $0.05 to $0.07 per share. The terse press release attributes the weaker forecast to “contractual delays” and “higher than usual seasonal slowdowns” in Europe, Russia and Africa, as well as to weaker-than-expected onshore drilling in the United States and Western Canada.
Schlumberger, along with rivals Halliburton Co. (NYSE: HAL) and Baker Hughes Inc. (NYSE: BHI), has been hit by the slowdown in natural gas drilling in North America. Gas producers have cut back production in an effort to drive natural gas prices higher. From a low of around $1.90 per thousand cubic feet in April, it rose to a high near $4 per thousand cubic feet, before dropping back to around $3.30 today.
The consensus estimate for Schlumberger’s fourth-quarter EPS is $1.13 on revenues of $11 billion. In the third quarter the company posted EPS of $1.08 on revenues of $10.6 billion. The company’s consensus estimate has dropped from $1.20 just three months ago and will slide further following today’s announcement.
The company’s shares are trading down about 3.8% in premarket activity this morning, at $69.81 in a 52-week range of $59.12 to $80.78.
Paul Ausick
Smart Investors Are Quietly Loading Up on These “Dividend Legends”
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats.
There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside.
If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.
