Shares of oilfield services giant Schlumberger (SLB) rallied 1.5% on Friday after its Q2 results surpassed analyst’s expectations on the back of robust demand for the company’s products and services due to higher oil prices during the quarter.
The company reported earnings of $0.30 per share, higher than $0.26 per share estimated by analysts. Notably, it compares favorably with a loss of $2.47 recorded in the same quarter last year.
Revenues came in at $5.6 billion, which surpassed the estimates of $5.5 billion, and compares favorably with $5.4 billion in the year-ago period. The upsurge was due to 32% growth in revenues from Digital & Integration segment. (See Schlumberger stock chart on TipRanks)
The CEO of Schlumberger, Olivier Le Peuch, said, “The quarter marks a leap forward in achieving our full-year financial targets with the potential for further upside given the right conditions.”
Moreover, the company expects international revenue to increase by double-digits in the second half of 2021, compared to the second half of last year.
On July 9, Morgan Stanley analyst Connor Lynagh maintained a Buy rating on the stock but raised the price target to $40 from $32. The analyst’s new price target implies upside potential of 40.8% from current levels.
Consensus among analysts is a Strong Buy based on 11 unanimous Buys. The average Schlumberger price target stands at $35.36 and implies upside potential of 24.5% from current levels.
Schlumberger scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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