Schlumberger Analyst Roundup Following Q4 Earnings

Schlumberger Limited. SLB beat Q4 EPS expectations Thursday, while revenue came in slightly below expectations.

As the first global oil company to report its fourth quarter results, it could serve as an indicator for other oil companies.

Schlumberger’s stock was up Friday and recently traded at $80.50, a gain of 5 percent.

Analysts commented on the stock following the earnings announcement. Below are some highlights along with current ratings and price targets.

Deutsche Bank - Buy, $86 price target

“SLB reported solid Q4 results but, while positive, they are even more backward looking than usual given the sharp decline in oil prices. As the industry leader, the market will carefully focus on management’s view of the outlook. At least in the press release, SLB offered limited thoughts on the direction of activity and pricing, choosing to focus on what they can control. While color is helpful, we hope they stick to this course on the conference call given 1) the inherent uncertainty at this stage of the cycle and 2) the tendency of management teams in this industry to reflexively defend the indefensible or unknowable. In the meantime, strong execution in a challenging market along with continued commitment to cash return to shareholders on a through-cycle basis demonstrates why SLB remains our Top Pick.”

Jefferies - Hold, $89 price target

“Stock reaction: Neutral. Ultimately, a non-committal tone about the direction doesn’t give investors enough yet to work with, although $3B in capex guidance actually suggests more optimism than expected. Results were adequate vs. guidance, with the beat concentrated in taxes and share count, although a solid Gulf of Mexico (even with softer than expected multi-client) and better than expected Europe/Russia/Africa margins helped too.”

Oppenheimer - Outperform, $110 price target

“Nice EPS beat after removing the $1.8 billion of one-time items. However, the real focus is on the operational challenges that lie ahead and there was limited commentary in the press release. All ears will be on the company's conference call tomorrow morning. Schlumberger reported adjusted 4Q14 EPS of $1.50 compared with our $1.47 estimate and the consensus of $1.45. The adjusted EPS removes $1.26 per share of losses from a WesternGeco impairment ($0.60), a currency devaluation in Venezuela ($0.36), a workforce reduction ($0.20) and an SPM impairment ($0.10). The majority of these one-time items were already communicated to investors.”