Schlumberger’s Stock Rises After Earnings as Cycles Point Higher

Steve Miller

Schlumberger (NYSE: SLB) soared 6% higher on Friday morning, after posting in line earnings and revenue that beat Wall Street expectations.

Our analysis is that the stock has more room to rise before hitting the high for its current market cycle and rolling over.

The oilfield services company reported earnings per share of $0.36 and total revenue of $8.2 billion, compared to analyst estimates of $0.36 and $8.1 billion. Domestic revenue increased by 0.3% and international revenue increased by 1%.

Looking forward, CEO Paal Kibsgaard explained that, “Even with the current oil prices, we expect solid, single-digit growth in the international markets.”

Looking at the market cycles for SLB, we can see the stock continues to trade in the rising phase of its current cycle.

While our outlook is negative overall, we believe the present rebound likely to take the stock near $47 in coming weeks.

Schlumberger (SLB) Stock Weekly Chart

schlumberger slb stock research earnings beat rally higher january 19

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