Schlumberger Limited (NYSE:SLB) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Last week, you might have seen that Schlumberger Limited (NYSE:SLB) released its first-quarter result to the market. The early response was not positive, with shares down 3.7% to US$49.51 in the past week. Results were roughly in line with estimates, with revenues of US$8.7b and statutory earnings per share of US$0.74. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Schlumberger

Taking into account the latest results, the most recent consensus for Schlumberger from 23 analysts is for revenues of US$37.3b in 2024. If met, it would imply a decent 9.3% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 16% to US$3.53. Before this earnings report, the analysts had been forecasting revenues of US$37.3b and earnings per share (EPS) of US$3.51 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$67.27, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Schlumberger analyst has a price target of US$81.00 per share, while the most pessimistic values it at US$57.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Schlumberger is forecast to grow faster in the future than it has in the past, with revenues expected to display 13% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.8% annually. Not only are Schlumberger's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$67.27, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Schlumberger. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Schlumberger analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Schlumberger you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.