Schlumberger NV (NYSE:SLB) reported weaker-than-expected revenue for its second quarter, sending its shares lower in pre-open Friday.
The company reported a profit per share of 72 cents on revenue of $8.1 billion, which compares to the consensus for earnings of $0.71 on sales of $8.2B. SLB generated $986 million in Q2 FCF.
“I am very pleased with our second-quarter results, which reflect significant growth in the international markets, particularly in the Middle East & Asia, and offshore. North America revenue also grew sequentially benefiting from our agility across the most resilient basins and market segments, although the rig count in the area declined. As the upcycle continues to unfold, we are excited about the opportunities for our business, with international- and offshore-led growth fueling strong pretax segment operating margin expansion and cash flows as highlighted in this quarter’s results,” SLB CEO Olivier Le Peuch commented.
The Q2 revenue underperformance was fueled by several business segments trailing analyst expectations for the second quarter.
Third Bridge analysts described the company’s results as “mixed.”
"To date, the year is playing out largely how the company expected with a more muted outlook for North America and overall profit margins picking up in Q2 through pricing power, technology adoption, and strength in key international markets," they said in a note.