SLB Beats Earnings Expectations And Sees ‘Solid’ Outlook

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SLB
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the oil-field services company formerly known as Schlumberger, beat earnings expectations and said the outlook for the year is positive.

But the stock was down 1.6% in the Friday premarket. The company reported weaker-than-expected cash flow and said activity the North American onshore market may plateau this year.

Earnings per share came in at 63 cents, compared with an average estimate of 60 cents among analysts surveyed by FactSet. Sales were $7.74 billion, compared with expectations for $7.44 billion.

“The global activity outlook for the full year remains very solid,” SLB (ticker: SLB) CEO Olivier Le Peuch said in a statement. “Through the first quarter, the resilience, breadth, and durability of this upcycle have become more evident, particularly in the international markets.”

While the shares fell, they are still up 16.6% in the past month.

Cash flow for the first three months of the year was $330 million compared with consensus for more than double that. Offshore activity is still strong, but the onshore business—shale gas in the U.S., which helped growth last year—is being hurt by lower gas prices and the reluctance of companies to spend more money on exploration and production, SLB said.

Write to Brian Swint at [email protected]