Energy

Schlumberger Warns on Earnings

Oil pumpjack
Thinkstock
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

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

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