SLB Q2 2024 earnings on deck; what to expect

Top oilfield services firm Schlumberger (NYSE:SLB) is expected to report higher second-quarter profit and revenue on Friday, before market open, driven by strong growth in its international business.

The consensus EPS estimate is $0.83 (+15.3% Y/Y) and the consensus revenue estimate is $9.09B (+12.2% Y/Y).

The company has seen significant rise in the international markets, which represents nearly 80% of its global revenue. In the first quarter, international revenue grew 18% year-on-year, compensating for a softer North American market where revenue declined 6%.

For Q2, SLB (SLB) expects a seasonal rebound in the Northern Hemisphere and robust activity internationally, led by the Middle East, Asia and Africa, and anticipates sequential growth internationally in the mid-single digits and North America in the low single digits.

Wall Street rates the SLB stock “STRONG BUY” and Seeking Alpha authors rate it “BUY”. So far this year, Schlumberger (SLB) has fallen 6%, underperforming the S&P 500 Energy Sector Index which rose nearly 12%. The benchmark S&P 500 Index is up 17% for the year.

Investors’ focus also remains on the company’s proposed ChampionX deal.

Morgan Stanley in May highlighted Schlumberger (SLB) among its high-quality growth list, as the brokerage continues to like quality across both cyclicals and growth.

Over the last 2 years, SLB has beaten EPS estimates 100% of the time and has beaten revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 5 upward revisions and 15 downward. Revenue estimates have seen 8 upward revisions and 11 downward.