SLB Q3 revenue rises 6%, beats analyst expectations

Overview

• Oilfield services provider's Q3 revenue grew 6% yr/yr, beating analyst expectations

• Adjusted EPS beat consensus estimates, rising 16% sequentially but down 7% yr/yr

• Company repurchased 12.9 mln shares for $656 mln during the quarter

Outlook

• SLB says supportive market fundamentals remain intact, with energy security driving international growth

• Company sees a compelling 2027 outlook, with upside as Middle East activity recovers

• SLB expects international growth driven by deepwater momentum, US shale expansion abroad, and data center solutions

Result Drivers

• MIDDLE EAST RECOVERY - Co said international revenue growth was led by a 13% increase in Middle East activity despite late-quarter disruptions

• NORTH AMERICA STRENGTH - Co said revenue growth in North America was driven by higher sales of production chemicals, artificial lift and valves in U.S. land, and increased drilling activity in Canada

• ACQUISITION CONTRIBUTION - ChampionX contributed $956 mln revenue, consisting of $662 mln in North America and $263 mln in the international markets

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for SLB N.V. is $63.00, about 27.1% above its October 22 closing price of $49.55

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Oct 20 - Halliburton Q3 revenue, profit beat estimates on higher drilling services

• Oct 20 - Weatherford Q3 revenue falls due to disruptions in Middle East

• Oct 21 - Norway's Var Energi operating cash flow hits $1.5 bln in Q3

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)