Schlumberger N.V. (NYSE:SLB) reported upbeat sales for its first quarter on Friday.
The company a first-quarter 2024 revenue increase of 13% year-over-year to $8.707 billion, beating the consensus of $8.689 billion. Adjusted EPS increased 19% Y/Y to 75 cents, which aligned with the consensus, according to data from Benzinga Pro.
Digital & Integration $953 million (+7% Y/Y); Reservoir Performance $1.725 billion (+15% Y/Y); Well Construction $3.368 billion (+3% Y/Y), and Production Systems $2.82 billion (+28% Y/Y). International revenue grew 18% Y/Y, with YoY growth of 29% in the Middle East & Asia and 18% in Europe & Africa. North American market revenue declined 6% Y/Y.
SLB declared a quarterly cash dividend of 27.5 cents per share, payable on July 11, 2024, to stockholders of record on June 5, 2024.
"We remain confident in our global revenue growth outlook for 2024, with softness in North America being offset by upside in the international markets," CEO Olivier Le Peuch commented. "Based on our strong start to the year, confidence in our ability to generate robust cash flows, and the anticipated contribution of the announced ChampionX acquisition, we are targeting to return $7 billion to shareholders over the next two years. This represents a target for returns to shareholders of $3 billion in 2024 and $4 billion in 2025."
SLB shares fell 0.2% to trade at $49.76 on Monday.
These analysts made changes to their price targets on SLB following earnings announcement.
- B of A Securities cut the price target on SLB from $63 to $62. B of A Securities analyst Chase Mulvehill maintained a Buy rating.
- BMO Capital lowered the price target on SLB from $66 to $64. BMO Capital analyst Phillip Jungwirth maintained an Outperform rating.
- TD Cowen cut the price target on SLB from $64 to $63. TD Cowen analyst Marc Bianchi maintained a Buy rating.
- Stifel analyst Stephen Gengaro maintained Schlumberger with a Buy and maintained a $64 price target.
- Morgan Stanley analyst Connor Lynagh maintained Schlumberger with an Overweight and maintained a $65 price target.
- Susquehanna analyst Charles Minervino maintained Schlumberger with a Positive and maintained a $77 price target.
- Benchmark analyst Kurt Hallead reiterated Schlumberger with a Buy and maintained a $68 price target.
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