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
“The Next NVIDIA” Could Change Your Life
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
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.