Schlumberger Limited (SLB) shares down after quarterly revenue fell short of expectations

Schlumberger Limited (SLB) shares down after quarterly revenue fell short of expectations

Schlumberger Limited (SLB) stock turned red in the pre-market trading session on Friday after the Texas-based oilfield services company reported lower-than-expected revenue for the third quarter, partly due to weak performance by its drilling unit. However, the company’s profit beat expectations.

The company posted a loss of $82 million, or 6 cents per share for the quarter, narrower than a loss of $11.38 billion, or $8.22 per share in the comparable period last year. On an adjusted basis, it reported a profit of 16 cents per share, down from 43 cents per share last year, but above consensus forecast of 12 cents per share.

Revenue for the quarter came in at $5.26 billion, be 38 percent versus last year, and below $5.40 billion forecasted by FactSet analysts.

If we look at the performance of different segments, the company’s production revenue plummeted 43 percent to $1.80 billion in the quarter, though managed to beat consensus forecast of $1.71 billion. Revenue from drilling declined 38 percent to $1.52 billion, well below analysts’ average estimate of $1.67 billion. Reservoir characterization revenue fell 39 percent to $1.01 billion, as compared to consensus outlook of $1.07 billion.

SLB shares opened at $15.75 in the last trading session. After hitting a high price of $16.44 and a low price of $15.55, finally closed at $16.42. The 52-week range of the stock is $11.87-$41.14 with current trading volume of 15.71 million and market capitalization of $22.793 billion.

Schlumberger’s stock slipped nearly 2 percent in the pre-market this morning following the quarterly results. If we look at the previous performance of the stock, it has plummeted nearly 50 percent over the past 12 months, and about 60 percent from January to date. However, the stock has somewhat recovered in the last 6 months by rising over 9 percent.

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