Schlumberger’s stock drops after adjusted profit beats but revenue misses expectations

/ / News

Shares of Schlumberger Ltd. dropped 1.6% in premarket trading Friday, after the oil services company reported a third-quarter adjusted profit that topped expectations but revenue that fell more than forecast, hurt by a miss by its drilling business. The net loss narrowed to $82 million, or 6 cents a share, from a loss of $11.38 billion, or $8.22 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share fell to 16 cents from 43 cents but was above the FactSet consensus of 12 cents. Revenue fell 38% to $5.26 billion, below the FactSet consensus of $5.40 billion. Among the business segments, production revenue fell 43% to $1.80 billion to top the FactSet consensus of $1.71 billion, drilling revenue dropped 38% to $1.52 billion to miss expectations of $1.67 billion and reservoir characterization revenue declined 39% to $1.01 billion to fall shy of expectations of $1.07 billion. For the fourth quarter, the company said conditions in North America are set for continued momentum with improving drilled but uncompleted (DUC) well completion activity in U.S. land and “modest” drilling resumption in the U.S. and Canada. The stock has tumbled 59.2% year to date through Thursday, while the VanEck Vectors Oil Services ETF has plunged 61.4% and the S&P 500 has gained 7.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.