Schlumberger ( (SLB) ) has risen by 7.18%. Read on to learn why.
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Schlumberger’s stock price has risen by 7.18% over the past week, driven by a positive outlook from analysts and strong performance in key business segments. Analysts from Citi and Barclays have raised their price targets for Schlumberger, citing improving earnings prospects due to deepwater contracting, a turnaround in Saudi activity, and significant digital growth. The company’s digital segment has been a standout performer, with a remarkable 39% growth, highlighting Schlumberger’s strategic focus on digital transformation as a key growth driver.
The company’s recent Q3 earnings call further bolstered investor confidence, as Schlumberger reported a 4% sequential revenue increase, reaching $8.9 billion. This growth was primarily fueled by the successful integration of Champagnex and robust performance in North America, where revenue surged by 17%. Despite challenges such as pipeline disruptions in Ecuador and flat performance in its core divisions, the company’s strategic initiatives and operational efficiency have maintained its growth momentum.
Looking ahead, Schlumberger anticipates continued growth, with expectations of high single-digit top-line growth in the fourth quarter. The company aims to expand its digital and Production Systems earnings, with potential fourth-quarter digital EBITDA margins reaching 35% on a full-year basis. While insider sentiment remains cautious, with some insiders selling shares, the overall analyst consensus remains strong, suggesting a positive outlook for Schlumberger’s future performance.