Schlumberger Q3 Earnings Top Estimates

Schlumberger Limited. SLB reported better-than-expected earnings for the third quarter. The Paris, France-based company posted quarterly net income of $989 million, or $0.78 per share, down from $1.95 billion, or $1.49 per share, in the year-earlier period. Its revenue declined 33 percent year-over-year to $8.47 billion from $12.65 billion. However, analysts were expecting a profit of $0.77 per share on revenue of $8.55 billion. The average estimate among 81 Estimize users was for earnings of $0.78 per share and revenue of $8.59 billion. Drilling Group revenue dipped 32 percent year-over-year to $3.3 billion in the quarter, while Production Group revenue tumbled 35 percent year-over-year to $3.0 billion. During the quarter, the company repurchased 6.9 million shares of its common stock for a total purchase price of $545 million. Schlumberger Chairman and CEO Paal Kibsgaard said, "In light of conservative customer budgets for next year, we are therefore entering another period during which we will continually adjust resources in line with activity, as the recovery now appears to be delayed. We remain focused on managing our cost base, and are further accelerating our transformation program to help offset the impact of lower service pricing. As we navigate the current commercial landscape, we still look to strike a balance between market share and operating margins, while continuing to seek opportunities to extend our portfolio through targeted M&A, such as our transaction with Cameron, where integration planning is already well advanced." Schlumberger shares fell 0.62 percent to $75.70 in the after-hours trading session.