How reliable are SLB's earnings forecasts historically?

Schlumberger's (SLB) earnings forecasts have shown a general decline over the past year, with a few fluctuations. Here's a detailed analysis: 1. **Recent Performance**: Schlumberger's stock has experienced a decline of 1.86% over the last month, which is more significant than the S&P 500's loss of 2.31%. This indicates a challenging period for the company, which has underperformed the broader market. 2. **Earnings Projection Trends**: - The projected earnings for the current quarter are $0.74 per share, reflecting a decrease of 1.33% from the same quarter last year. - The consensus earnings estimate for the current fiscal year is $3.38 per share, suggesting a potential year-over-year decline of 0.9%. 3. **Historical Reliability**: - Schlumberger's earnings estimates have not shown significant improvements or changes over the last 30 days, remaining stable at $0.74 per share. - The lack of change in the consensus estimate for the current fiscal year suggests that analysts are maintaining their cautious outlook. 4. **Market Sentiment and Analyst Ratings**: - Schlumberger's stock has been given a Zacks Rank of #3 (Hold), indicating a neutral stance from analysts. - The Zacks Rank, which is based on earnings estimate revisions, has not indicated any significant optimism or pessimism. 5. **Revenue Projections and Historical Context**: - The projected revenue for the current quarter is $8.63 billion, indicating a slight decrease of 0.84% from the same quarter last year. - For the entire fiscal year, the revenue projection is $38.63 billion, suggesting a potential increase of 6.45%. - Schlumberger's revenue has shown a general upward trend, with a 3.27% increase in the most recent quarter. In conclusion, Schlumberger's earnings forecasts have been generally declining, with no significant improvements over the last 30 days. The lack of change in earnings projections and the neutral analyst sentiment as indicated by the Zacks Rank suggest that while there is some stability in the company's earnings outlook, it does not point to a strong recovery or positive growth in the near term. The company's revenue has shown more resilience, with a potential increase for the full fiscal year. Investors should monitor Schlumberger's performance closely, especially in light of any changes in the company's business trends that could impact earnings estimates and, consequently, stock performance.