SLB's Earnings Report Highlights

• Earnings Per Share (EPS) of $0.89 surpassed estimates, indicating a positive earnings surprise of 1.14%.
• Revenue of $9.16 billion fell short of the estimated $9.27 billion, reflecting challenges in the oil and gas sector.
• Financial metrics reveal a price-to-earnings (P/E) ratio of approximately 13.80 and a debt-to-equity ratio of about 0.63, showcasing the company's market valuation and financial health.

SLB, a leading oilfield services provider listed on the NYSE:SLB, reported earnings per share (EPS) of $0.89 on October 18, 2024. This figure surpassed the estimated $0.885, marking a positive earnings surprise of 1.14%. Despite this, the company's revenue of $9.16 billion fell short of the estimated $9.27 billion, as highlighted by Barrons.

The company's revenue for the third quarter increased by 10% year-over-year, reaching $9.16 billion. However, this was approximately $100 million below the consensus estimates from analysts surveyed by Visible Alpha. The decline in oil and gas prices has impacted SLB's quarterly results, leading to a decrease in its share price.

In North America, SLB's revenue grew by 3% to $1.69 billion. This growth was limited by reduced drilling activity in U.S. land markets, influenced by lower gas prices and capital discipline by operators. SLB's CEO, Olivier Le Peuch, acknowledged these challenges in his remarks.

SLB's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 13.80 and a price-to-sales ratio of about 1.72. The enterprise value to sales ratio is around 2.01, while the enterprise value to operating cash flow ratio is approximately 10.96.

The company's earnings yield stands at about 7.24%, indicating the return on investment for shareholders. With a debt-to-equity ratio of approximately 0.63, SLB maintains a moderate level of debt compared to its equity. The current ratio is around 1.49, reflecting its ability to cover short-term liabilities with short-term assets.