Schlumberger's Q1 Earnings to Miss Estimates, Zacks Rank Downgraded to Strong Sell

Schlumberger (SLB) has seen a -2.9% return over the past month, compared to the Zacks S&P 500 composite's +2% change. The company is expected to post earnings of $0.68 per share for the current quarter, a year-over-year change of -23.6%. The consensus earnings estimate for the current fiscal year is $2.88, indicating a year-over-year change of -15.5%. The Zacks Rank for Schlumberger is #5 (Strong Sell) based on recent changes in the consensus estimate and other factors related to earnings estimates.

Schlumberger (SLB) has experienced a -2.9% return over the past month, compared to the Zacks S&P 500 composite's +2% change. The company is expected to post earnings of $0.68 per share for the current quarter, a year-over-year change of -23.6%. The consensus earnings estimate for the current fiscal year is $2.88, indicating a year-over-year change of -15.5%. The Zacks Rank for Schlumberger is #5 (Strong Sell) based on recent changes in the consensus estimate and other factors related to earnings estimates [1].

Representative Lisa C. McClain recently purchased shares of Schlumberger, indicating a bullish stance despite the recent earnings forecast. McClain bought between $1,001 and $15,000 in Schlumberger stock on July 16th, as disclosed in a filing on August 13th [1].

Schlumberger's recent quarterly earnings data shows a decrease in EPS from $0.85 to $0.74, a 12.9% drop. The company's revenue was down 6.5% year-over-year, with revenue of $8.55 billion compared to $8.51 billion in analyst expectations [1].

The company's financial health is reflected in its key ratios. Schlumberger has a debt-to-equity ratio of 0.51, a quick ratio of 0.98, and a current ratio of 1.31. Its market cap stands at $44.55 billion, with a price-to-earnings ratio of 11.29 and a beta of 1.03 [1].

Analysts have provided mixed ratings for Schlumberger. Atb Cap Markets upgraded the stock to a "strong-buy" rating, while Barclays lowered its price target from $47.00 to $46.00 and set an "overweight" rating. Jefferies Financial Group dropped its price objective from $54.00 to $53.00 and set a "buy" rating. Morgan Stanley lowered its price target from $50.00 to $45.00 and set an "overweight" rating. Wells Fargo & Company downgraded the stock from a "strong-buy" rating to a "hold" rating [1].

Schlumberger recently declared a quarterly dividend of $0.285 per share, set to be paid on October 9th, representing an annualized yield of 3.5%. The dividend payout ratio is currently 39.04% [1].

Institutional investors have also shown interest in Schlumberger. First Command Advisory Services Inc. lifted its holdings by 300.0% in the first quarter, and several other institutions have increased their stakes in the company [1].

Despite the mixed outlook, Schlumberger's strong dividend and recent institutional investments suggest a potential recovery for the stock. However, the company's earnings downturn and strong sell rating from Zacks indicate caution is warranted for investors.

References:
[1] https://www.marketbeat.com/instant-alerts/rep-lisa-c-mcclain-purchases-shares-of-schlumberger-limited-nyseslb-2025-08-15/
[2] https://finance.yahoo.com/news/heres-key-metrics-tell-us-133002048.html