Schlumberger NV (NYSE: SLB) has confirmed the release date for its Q4 2021 earnings, which will be on Friday, 21, 2022, before the market open.
What to look for
The oil and gas company is expected to report revenue and earnings growth by releasing its Q4 2021 earnings. However, it seems the worst is behind the Houston-based firm, with investors sending SLB stock up 33% from December lows. That stock surge is attributed to robust demand for energy products after the COVID-19 shock that forced the company to restructure its operations. The company operates in over 120 countries, supplying the gas and oil sector's most comprehensive range of services and products from exploration to production.
Earnings: Stockearning’s Estimated EPS for Q4 2021 is expected to be around $0.39 per share representing YoY growth of 77.27%. In the third quarter, the company had GAAP EPS that included charges and credits of $0.39 whole adjusted EPS was $0.36 representing a 20% sequential increase. In addition, historical EPS Performance for the past 12 quarters shows that the company has beat estimates eight times (66%) and met estimates four times (33%).
Revenue: For the fourth quarter, the company expects revenue of $6.09 billion, representing a YoY growth of 10.02%. In the third quarter, global revenues were $5.85 billion representing a sequential increase of 4% and a YoY increase of 11%. Additionally, the company reported international revenue of $4.68 billion whole in North America the company posted revenue of $1.13 billion.
Stock movement: SLB shares have gained 10.2% since the company released its third-quarter earnings. Interestingly, SLB shares have been UP 25 times out of the past 48 quarters. So, the historical price reaction suggests a 52% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 2%, while the predicted move on the seventh day is 4%.
What analysts are saying
Benchmark analyst Douglas Becker commenced coverage of Schlumberger with a Hold rating without a price target. Becker told investors that he expects US drilling and completion spending to rise 35 percent -40 percent in 2022, which is significantly higher than most forecasts of 20 percent -30 percent growth. However, he believes that other large energy services firms will offer more short-term positive estimate revision potential, given that North America accounts for only about 20% of Schlumberger's revenue.
Barclays analyst J. David Anderson raised his price target in SLB from $38 to $48 and maintained a Buy rating on the shares. According to the analyst, he was impressed by 2022 and 2023 projections "as a multi-year upcycle unfolds" with "another excellent quarter in the books and a wide ranging international recovery well begun." Schlumberger remains Anderson's first pick.
JPMorgan analyst Arun Jayaram upgraded SLB shares from Hold to Buy and raised his price target from $28 to $37. According to the analyst, "capex constraint" in the United States will result in less shale growth, while increased foreign operations will support an expansion in productive capacity. In 2022, OPEC+ will resume its status as a "marginal" producer, Jayaram writes in a research note, which should result in higher sustained oil prices as well as increased upstream spending, notably in Schlumberger's MENA market. In addition, he thinks the firm's international footprint, project integration abilities, and indicators of "strong digital adoption" will help it boost its cash flow.
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