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Schlumberger Kicks Off Oilfield Services Earnings Season: What You Need To Know

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Schlumberger Limited (NYSE: SLB) is set to kick of Q2 earnings season for oil & gas equipment and services stocks on Thursday. Here’s a breakdown of what to expect from Schlumberger and the rest of the industry this quarter.

Expectations

According to Estimize, Wall Street is looking for EPS of $0.79 from Schlumberger on revenue of $9.15 billion for the quarter. If Schlumberger hits that mark, it would represent a 3.9 percent quarter-over-quarter growth in earnings, but a 34.7 percent decline from Q2 2014’s $1.21 EPS for the company.

Recent History

Despite the fact that Schlumberger’s stock is down more than 27 percent over the past year, the stock has reacted positively to six of the company’s last eight earnings reports by trading higher on the following trading day. In fact, the only two times Schlumberger’s stock has traded down on the day following earnings were less than 2.0 percent drops following Q1 and Q2 earnings in 2014.

Schlumberger’s largest positive reaction was 6.1 percent move following Q4 2014’s report. Overall, Schlumberger is averaging a 2.23 percent return on the day following its last eight earnings reports.

Looking For A Turnaround

It’s not just Schlumberger shareholders that will be watching closely on Thursday.

Oil & gas equipment and services investors are hoping that Q2 numbers will provide a catalyst to reverse the industry’s underperformance so far in 2015. Year-to-date, the Market Vectors Oil Services ETF (NYSE: OIH) is down 8.2 percent.

Halliburton Company (NYSE: HAL) reports on July 20, Baker Hughes Inc (NYSE: BHI) reports on July 21 and National Oilwell Varco Inc (NYSE: NOV) reports on July 28.

 

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