Oilfield services company SLB (SLB), previously known as Schlumberger, is scheduled to announce its results for the fourth quarter of 2024 on Friday, January 17. SLB stock has declined nearly 19% in the past year. The company delivered mixed results for Q3 2024 and cautioned investors about Q4 revenue amid restricted activity and spending by oil producers due to weak prices. Wall Street expects SLB’s Q4 2024 EPS to rise by about 4.6% year-over-year to $0.90.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Further, analysts expect Q4 revenue to rise by 2.1% to $9.18 billion. The top line reflects modest growth, given the company’s outlook that North American activity is not expected to rebound in the near term and the projection of limited spending by international customers.
Analysts’ Views Ahead of SLB’s Q4 Results
On Wednesday, Evercore ISI analyst Stephen Richardson downgraded SLB stock to Hold from Buy and reduced the price target to $44 from $62. The analyst noted the challenges faced by oilfield services companies, including low growth in North America and capital restraint in international markets. Evercore’s global exploration and production spending survey indicates flat spending this year. Accordingly, Richardson reduced the 2025 estimates by 10% across the sector and downgraded eight names, including SLB, in the group.
Similarly, TD Cowen analyst Marc Bianchi reduced the price target on SLB to $53 from $65 but maintained a Buy rating. The analyst lowered activity assumptions for global oilfield services for 2025 and beyond, citing continuing erosion in market data and industry commentary. He highlighted that the sector continues to be impacted by downward revisions, mainly for shorter-cycle businesses. However, Bianchi remains bullish on SLB due to its attractive valuation.
Here’s What Options Traders Expect
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 4.3% move in either direction in reaction to SLB’s Q4 results.
Is SLB Stock a Good Buy?
Wall Street is cautiously optimistic on SLB stock, with a Moderate Buy consensus rating based on 13 Buys and five Hold recommendations. The average SLB stock price target of $52.69 implies about 30% upside potential from current levels.
