How did SLB's Q4 2024 earnings surprise the market?

Schlumberger Limited (NYSE: SLB) experienced a slight negative surprise in its Q4 2024 earnings estimates, according to the latest report by Atb Cap Markets. Here are the details:

1. **Earnings Estimate**: Atb Cap Markets analyst W. Syed reduced his Q4 2024 earnings per share (EPS) estimate for Schlumberger from $1.01 to $0.92. This downward revision indicates a more conservative outlook for the quarter's earnings.
2. **Revenue Estimate**: The estimated revenue for the quarter was unchanged at $9.2 billion. This suggests that while earnings may be slightly lower than anticipated, revenue expectations remain stable.

3. **Market Reaction and Analyst Views**: Despite the earnings estimate reduction, Schlumberger's stock has not shown significant negative movement. Analysts remain largely positive, with a consensus estimate for full-year EPS of $3.49 per share. This suggests that the market may be anticipating the earnings decline and is not overly concerned about it.
4. **Q3 Performance as a Indicator**: Schlumberger's Q3 2024 performance was generally in line with market expectations, with earnings of $0.89 per share beating the consensus estimate of $0.88. This recent performance, along with strong free cash flow and margin expansion, could mitigate the impact of the Q4 earnings miss on investor sentiment.

In conclusion, while Schlumberger's Q4 2024 earnings are expected to slightly miss market expectations, the company's overall performance and future outlook remain positive, as indicated by strong Q3 results and optimistic comments on future growth initiatives.