Earnings Preview: Schlumberger

Schlumberger (SLB) is expected to report Q3 earnings before market open Friday, October 17, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for EPS of $1.25 on revenue of $7.02B. The consensus range is $1.18 to $1.29 for EPS, and $6.82B to $7.17B for revenue, according to First Call. Schlumberger has dropped below $50 a share, down over -8% in trading Thursday, on falling oil futures.

Analyst Views

Merrill Lynch believes the outlook Schlumberger issues tomorrow when it reports its Q3 results could be more cautious than the one issued at the company's analyst day. Goldman was also cautious on the company and the sector, downgrading U.S. oil services to Neutral from Attractive and Schlumberger to Neutral from Buy. On a positive note, Barron's Magazine identified Schlumberger as a "cash cow" earlier in October, a company that could offer "little debt, decent earnings growth, healthy profit margins and free cash flow to spare, that could offer both comfort and upside to investors during the market's storm.