Schlumberger’s Financial Outlook Remains Positive Amid Market Challenges

Wall Street analysts continue to exhibit a bullish outlook on Schlumberger Limited, as the company stands strong with a market capitalization of $56.3 billion. Based in Houston, Texas, Schlumberger is recognized globally as a leader in oilfield services, providing essential technology and expertise to the energy sector. Their services encompass a wide range, supporting oil and gas companies from reservoir evaluation and drilling to well construction and production optimization.

Typically, companies valued at $10 billion or more are classified as “large-cap” stocks, and Schlumberger fits this classification seamlessly. The company operates through four primary segments: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems, facilitating extensive solutions across the upstream energy industry.

Market Performance Overview

Despite its strong market position, the oilfield giant has seen its stock dip by 24.4% from a 52-week high of $55.69, reached in March 2024. Over the past three months, shares of SLB have risen 3%, outperforming the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which experienced a decline of 15.2% during the same timeframe.

Looking at the longer term, Schlumberger’s stock has gained 9.8% year-to-date, contrasting with XES, which has seen a 12.4% decline. Moreover, during the past 52 weeks, Schlumberger shares dropped 16.5%, while XES saw a 19.2% decrease over the same period.

Notably, Schlumberger stock has been trading below its 50-day and 200-day moving averages since last year, indicating potential challenges in maintaining upward momentum.

On January 17, shares of Schlumberger climbed over 6% following a robust Q4 2024 earnings report, where they reported an adjusted EPS of $0.92 and revenues of $9.3 billion, both exceeding market expectations. The positive investor reaction was fueled by a 6% sequential and 10% year-over-year growth in the Digital & Integration sector, powered by AI-driven solutions like the Lumi platform. Furthermore, the company boosted its quarterly dividend by 3.6% and authorized a minimum of $4 billion for share buybacks, reflecting strong cash flow confidence and enhancing investor sentiment.

Competitive Positioning

In comparison, Baker Hughes Company (BKR) has trailed Schlumberger with a mere 2.7% gain year-to-date, though it has surged 37.6% over the last 52 weeks, outpacing Schlumberger’s performance.

Despite facing challenges over the past year, analysts remain optimistic about SLB’s future. The stock has garnered a consensus rating of “Strong Buy” from the 25 analysts monitoring it, currently trading below the mean price target of $53.65.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.