NYSE$SLB

SLB Ltd · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

SLB's first quarter results were announced, highlighting revenue growth and strategic acquisitions.

SLB announced strong first-quarter results with revenue increasing by 13% year-on-year to $8.71 billion. The company's EPS, excluding charges and credits, rose by 19% to $0.75, and net income attributable to SLB increased by 14% to $1.07 billion. The company is targeting to return $7 billion to shareholders over 2024-2025.

  • Revenue increased 13% year-on-year to $8.71 billion.
  • EPS, excluding charges and credits, increased 19% year-on-year to $0.75.
  • Net income attributable to SLB increased 14% year-on-year to $1.07 billion.
  • The company is targeting to return $7 billion to shareholders over the next two years.

Headline financials

Total Revenue

$8.71B

Previous: $7.74B+12.6%
EPS (adj)

$0.75

Previous: $0.63+19.0%
Capital Expenditures

-$399M

Previous: -$410M+2.7%
Free Cash Flow

$669M

Previous: $524M+27.7%
Net Income

$1.07B

Previous: $934M+14.3%
Operating Income

$1.65B

Previous: $1.39B+18.5%
Gross Profit

$1.59B

Previous: $1.45B+9.4%
Cash & Equivalents

$2.79B

Previous: $1.5B+85.7%
Total Assets

$47.9B

Previous: $43.9B+9.1%
R&D Expense

$182M

No prior period
Stock-Based Comp

$100M

Previous: $81M+23.5%

Revenue & EPS history

Schlumberger · Revenue · Quarterly

$8.71B

Q1 2024+12.6%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Schlumberger · $8.46B total across 4 segments · Q3 2023

  • Well Construction
    $3.43B+11.2%
  • Production Systems
    $2.37B+10.1%
  • Reservoir Performance
    $1.68B+15.4%
  • Digital
    $982M+9.1%

Forward guidance

SLB anticipates a rebound in activity in the Northern Hemisphere and robust international activity, especially in the Middle East, Asia, and Africa, which will drive broad sequential margin expansion across all Divisions and geographies. They affirm previous guidance of mid-teens EBITDA growth for the full year.

Tailwinds

  • Seasonal rebound in activity expected in the Northern Hemisphere.
  • Robust international activity anticipated, led by the Middle East, Asia, and Africa.
  • Broad sequential margin expansion expected across all Divisions and geographies.
  • Affirmation of previous guidance of mid-teens EBITDA growth for the full year.
  • Strong start to the year boosts confidence in generating robust cash flows.

Headwinds

  • Softness in North America is expected to be offset by upside in international markets.
  • Revenue declined 3% sequentially both in North America and in the international markets due to seasonality.
  • Digital & Integration pretax operating margin contracted 300 bps year on year and 735 bps sequentially.
  • Well Construction pretax operating margin of 20% was essentially flat year on year, but contracted 198 bps sequentially.
  • Free cash flow was negative $222 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.7%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-0.8%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+14.1%

Q3 2022

Best reaction

-8.6%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+1.8%
Q4 2025-0.9%-0.9%+3.1%
Q3 2025-0.9%+6.0%+12.2%
Q2 2025-1.0%-0.6%+6.0%
Q1 2025-1.2%-4.8%-3.6%
Q4 2024+6.4%+1.3%+1.6%
Q3 2024-3.5%-4.2%-1.8%
Q2 2024+1.5%-1.4%-8.1%
Q1 2024-2.8%-3.6%-4.6%
Q4 2023+4.4%+6.4%+0.0%
Q3 2023-1.9%-5.6%-11.9%
Q2 2023-0.4%+0.7%+1.3%
Q1 2023-3.4%-8.1%-12.9%
Q4 2022-2.6%-2.0%-7.0%
Q3 2022+14.1%+14.2%+17.0%
Q2 2022+7.6%+8.0%+10.4%
Q1 2022-4.8%-1.7%+1.2%
Q4 2021-1.2%+7.4%+8.5%
Q3 2021+0.2%-5.1%-12.4%
Q2 2021+5.3%+4.8%-5.4%
Q1 2021+4.4%+8.4%+26.5%
Q4 2020-1.9%-9.8%+8.0%
Q3 2020-8.6%-8.6%+9.6%
Q2 2020+2.0%+0.7%-3.7%
Q1 2020+8.3%+9.2%+13.5%
Q4 2019-4.7%-5.4%-11.2%
Q3 2019+5.3%+10.8%+10.9%
Q2 2019+1.8%+4.0%-15.6%
Q1 2019-3.3%-3.2%-17.7%
Q4 2018+6.3%+4.7%+8.7%
Q3 2018-2.8%-9.3%-17.5%
Q2 2018-1.8%-1.7%-6.1%
Q1 2018-1.9%-1.7%+5.7%
Q4 2017+4.5%+2.4%-13.2%
Q3 2017-4.0%-1.6%-3.9%
Q2 2017-0.9%-0.0%-5.5%
Q1 2017-3.1%-3.1%-6.2%
Q4 2016-3.4%-1.9%-7.5%
Q3 2016-3.6%-3.9%-4.1%
Q2 2016+1.3%+0.0%+3.4%
Q1 2016-1.4%
Q4 2015+6.8%
Q3 2015-0.7%
Q2 2015+0.1%
Q1 2015+0.9%
Q4 2014+3.8%
Q3 2014+5.3%
Q2 2014-3.0%
Q1 2014+0.9%
Q4 2013+2.8%
Q3 2013+2.2%
Q2 2013+6.8%
Q1 2013+0.3%
Q4 2012+6.3%
Q3 2012-2.2%
Q2 2012+1.3%
Q1 2012+0.6%
Q4 2011+2.8%
Q3 2011+11.4%
Q2 2011-2.7%
Q1 2011+0.1%
Q4 2007+0.4%
Q4 2010+0.4%
Q3 2010+0.6%
Q2 2010-0.1%
Q1 2009+4.0%
Q1 2010+2.4%
Q4 2009-0.6%
Q3 2008-0.2%
Q3 2009-0.2%
Q2 2009-2.1%
Q2 2008-2.1%
Q4 2008-2.1%

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