Should you buy Schlumberger stock on a solid Q4 report?
Schlumberger NV (NYSE: SLB) is in focus this morning after the oil services company reported better-than-expected results for its fiscal fourth quarter.
Schlumberger expects a strong 2023
More importantly, Schlumberger is confident that it’ll have a strong 2023 on continued demand and increased investments in oilfield services. In the press release, CEO Olivier Le Peuch said:
Improved pricing and our commercial success – particularly in the Middle East, offshore, and North America – combined to set a very strong foundation for outperformance in 2023.
Schlumberger raised its dividend
Schlumberger reported meaningful growth in all of its business segments this quarter. Consequently, it announced a whopping 43% increase in its quarterly dividend to 25 cents a share on Friday.
Schlumberger stock has gained nearly 70% since late September.
Should you buy Schlumberger stock
Also on Friday, Benchmark analyst Kurt Hallead said this oil stock was a top name for 2023.
Upside earnings momentum should pull investors back into oil services with recession concerns creating pent-up demand. SLB is in a strong position to benefit from increased spending on offshore projects and be a leader in energy transition.
Hallead sees upside in Schlumberger stock to $65 – about a 15% increase from here.
Schlumberger Q4 earnings snapshot
- Earned $1.07 billion versus the year-ago $601 million only
- Per-share earnings also climbed from 42 cents to 74 cents
- Adjusted for one-time items, EPS printed at 71 cents
- Revenue jumped 26.6% year-on-year to $7.88 billion
- Consensus was 68 cents a share on $7.81 billion revenue
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