Shares of Schlumberger Ltd. (NYS:SLB) slumped 0.9% in premarket trading Friday, after the oil services company reported a third-quarter profit that matched expectations but revenue rose missed, but provided an upbeat outlook oil and gas demand. The company swung to net income of $550 million, or 39 cents a share, from a loss of $82 million, or 6 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share more than doubled to 36 cents from 16 cents, compared with the FactSet consensus of 36 cents. Revenue grew 11.2% to $5.85 billion, below the FactSet consensus of $5.15 billion. Among business segment revenue, well construction topped expectations and reservoir performance matched, but digital and integration and production systems missed. "The industry macro fundamentals have visibly strengthened this year, particularly in recent weeks-with demand recovery, oil and gas commodity prices at recent highs, low inventory levels, and encouraging trends in pandemic containment efforts," said Chief Executive Olivier Le Peuch. The stock has soared 22.6% over the past three months through Thursday, while the VanEck Oil Services ETF (PSE:OIH) has run up 16.1% and the S&P 500 (S&P:SPX) has gained 4.2%.
Oct. 22, 2021, 7:07 a.m. EDT