NYSE$SLB

SLB Ltd · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Schlumberger's Q4 2019 earnings decreased sequentially but increased year-on-year, driven by international growth and North America weakness.

Schlumberger's Q4 2019 revenue was $8.2 billion, a 4% decrease sequentially. GAAP EPS was $0.24, and non-GAAP EPS was $0.39. International revenue grew 2% sequentially, while North America revenue declined 14%. The company generated $1.5 billion in free cash flow.

  • Fourth-quarter revenue decreased 4% sequentially due to North America weakness.
  • International revenue grew 2% sequentially and 8% year-on-year.
  • GAAP EPS was $0.24, while EPS excluding charges and credits was $0.39.
  • The company focused on international growth and cost management in North America.

Headline financials

Total Revenue

$8.23B

Previous: $8.18B+0.6%
EPS (adj)

$0.39

Previous: $0.36+8.3%
Pretax Segment Op Margin

12.2%

No prior period
Capital Expenditures

$494M

Previous: $621M-20.5%
Free Cash Flow

$1.5B

Previous: $1.71B-12.3%
Net Income

$333M

Previous: $538M-38.1%
Operating Income

$452M

Previous: $715M-36.8%
Gross Profit

$1.1B

Previous: $1.01B+9.2%
Cash & Equivalents

$2.17B

No prior period
Total Assets

$56.3B

Previous: $70.5B-20.1%
Stock-Based Comp

$76M

Previous: $86M-11.6%

Revenue & EPS history

Schlumberger · Revenue · Quarterly

$8.23B

Q4 2019+0.6%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Schlumberger · $6.95B total across 3 segments · Q4 2019

  • Production Systems
    $2.87B
  • Well Construction
    $2.44B
  • Reservoir Performance
    $1.64B

Forward guidance

Schlumberger anticipates mid-single-digit growth in E&P capex spending in international markets for 2020. International revenue is expected to grow at the same pace or higher, excluding the effects of the Sensia and Drilling Tools transactions. North America will continue to scale-to-fit, focusing on asset-light operations and technology access business models. The company is confident in its ability to improve cash flow generation in 2020.

Tailwinds

  • 2020 oil demand growth sentiment turning positive
  • Fall in the North America production growth estimate
  • Escalation of geopolitical risk should set the floor for the oil price
  • International portfolio revenue to grow at same pace or higher
  • Focus on improved margins, capital stewardship, and careful management of working capital

Headwinds

  • OPEC+ production cuts agreed upon in December 2019 to limit investment and activity
  • Conditions in North America land became more challenging
  • Continuing to scale-to-fit organization and portfolio
  • Repurposing or exiting underperforming business units
  • Closing of a significant number of facilities and workforce reductions

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 Q4 2019

Historical avgQ4 2019

+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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