Schlumberger +4.7% after long-term profit guidance beats expectations


Schlumberger (SLB +4.7%) surges after providing long-term profit guidance at an investor presentation today, predicting EPS growth at a compound annual growth rate of 17%-20%; in an earlier note, RBC analyst Kurt Hallead wrote that the Street was expecting the company's EPS to grow at an annualized rate of 15%.

SLB says it can achieve $9-$10 EPS through revenue growth, margin expansion and share repurchases; Hallead had predicted SLB's EPS would reach $8 in 2016.

Expects spending on exploration would be subdued in 2015, but expects a renewed focus on exploration in 2016-17.

Other oil services companies also are higher: HAL +2.1%, BHI +1.9%, WFT +1.1%, NOV +1%.

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Comments (4)
  • aeroguy48
    , contributor
    Comments (905) | Send Message
     
    Cool, my energy services mutual fund will gain even more
    25 Jun 2014, 12:40 PM Reply Like
  • Momintn
    , contributor
    Comments (6086) | Send Message
     
    Well I was going to sell my SLB when I got 8% in my IRA and now I am up 28% on that position in less than 6 months.
    25 Jun 2014, 01:01 PM Reply Like
  • kolpin
    , contributor
    Comments (1383) | Send Message
     
    Love seeing SLB hit highs on heavy volume. So hard psychologically to add to my position though.
    25 Jun 2014, 01:20 PM Reply Like
  • Wilfred Longfellow
    , contributor
    Comments (109) | Send Message
     
    Well, historically the oil service companies are cyclical, but they do have a long term growth trend as they provide more value added services to National Oil Companies. I would NOT rely on a long term linear extrapolation of growth. Even though, with current oil prices, it seems believable...
    25 Jun 2014, 10:16 PM Reply Like
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