Schlumberger Delivers Impressive Q2 Results; Street Says Buy

Shares of oilfield services giant Schlumberger (SLB) rallied 1.5% on Friday after its Q2 results surpassed analyst’s expectations on the back of robust demand for the company’s products and services due to higher oil prices during the quarter.

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The company reported earnings of $0.30 per share, higher than $0.26 per share estimated by analysts. Notably, it compares favorably with a loss of $2.47 recorded in the same quarter last year.

Revenues came in at $5.6 billion, which surpassed the estimates of $5.5 billion, and compares favorably with $5.4 billion in the year-ago period. The upsurge was due to 32% growth in revenues from Digital & Integration segment. (See Schlumberger stock chart on TipRanks)

The CEO of Schlumberger, Olivier Le Peuch, said, “The quarter marks a leap forward in achieving our full-year financial targets with the potential for further upside given the right conditions.”

Moreover, the company expects international revenue to increase by double-digits in the second half of 2021, compared to the second half of last year.

On July 9, Morgan Stanley analyst Connor Lynagh maintained a Buy rating on the stock but raised the price target to $40 from $32. The analyst’s new price target implies upside potential of 40.8% from current levels.

Consensus among analysts is a Strong Buy based on 11 unanimous Buys. The average Schlumberger price target stands at $35.36 and implies upside potential of 24.5% from current levels.

Schlumberger scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.