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Opinions Jennifer Radman
Schlumberger Ltd.SLBHOLDAug 01, 2013
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Last Friday they reported a slight top and bottom line beat with revenue up 14% YOY and free cash flow up 167% YOY. Strength lies in their international business, with 10 straight quarters of double-digit growth. Guidance was encouraging, though they seldom say much, driven by this international business. Also, they raised their dividend 10% and will increase buybacks, which will absorb their higher-than-expected capex.
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Premium contentSLB represents the "pick and shovels" of the energy industry, involved in building infrastructure. Earnings recently beat analyst expectations as US revenues grew despite reduced drilling activity in several key regions. It trades at 18x earnings and supports a 22% ROE. We recommend placing a stop-loss at $47, looking to achieve $63 -- upside potential of 18%. Yield 1.7%
(Analysts’ price target is $63.76)
Delivered a mixed Q3, but earnings were excellent with revenues up double digits. Today's sell-off is a buy. They've been increasing their dividend a lot in recent years, nearly 2%. They benefit from the exploration, more than the price, of oil, and they are digging now.
Kevin Sullivan
David Fingold
The whole sector has been picking up. This one is global so they get the benefit of that. The huge opportunity in the US is the reserves that have been uncovered in the last several years. Has never been a cheap stock but is trading below where it historically has. If you own, it will probably work out for you.