Schlumberger’s Q1 Revenue Surges 13%, Beating Expectations
Schlumberger N.V. (SLB) reported impressive financial results for the first quarter of 2024, surpassing analysts’ estimates. The company’s revenue increased by 13% year-over-year to $8.707 billion. Adjusted earnings per share (EPS) also showed a 19% year-over-year increase to 75 cents, aligning with consensus expectations.
International Markets Drive Growth
Schlumberger’s growth was primarily driven by international markets. Revenue in the Middle East & Asia region surged by 29% year-over-year, while Europe & Africa saw an 18% increase. However, the company’s North American market revenue declined by 6%.
Product Segment Performance
All of Schlumberger’s product segments contributed to the company’s growth:
* Digital & Integration: $953 million (+7% Y/Y)
* Reservoir Performance: $1.725 billion (+15% Y/Y)
* Well Construction: $3.368 billion (+3% Y/Y)
* Production Systems: $2.82 billion (+28% Y/Y)
Dividend and Outlook
SLB declared a quarterly cash dividend of 27.5 cents per share, payable on July 11, 2024. The company remains confident in its global revenue growth outlook for 2024, with softness in North America being offset by upside in international markets. Schlumberger plans to return $7 billion to shareholders over the next two years, with a target of $3 billion in 2024 and $4 billion in 2025.
Analyst Reactions
Following the earnings announcement, several analysts revised their price targets on Schlumberger:
* B of A Securities lowered its price target from $63 to $62 but maintained a Buy rating.
* BMO Capital lowered its price target from $66 to $64 but maintained an Outperform rating.
* TD Cowen cut its price target from $64 to $63 but kept a Buy rating.
* Other analysts maintained their positive ratings and price targets for Schlumberger.
