Benzinga | Apr 22, 2021 10:21AM EDT

Earnings Preview for Schlumberger

Schlumberger (NYSE:SLB) will be releasing its next round of earnings this Friday, April 23. For all of the relevant information, here is your guide for Friday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Schlumberger EPS is expected to be around $0.19, according to sell-side analysts. Sales will likely be near $5.09 billion. In the same quarter last year, Schlumberger reported earnings per share of $0.25 on revenue of $7.46 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Friday, earnings would be down 24.0%. Sales would be down 31.72% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.17 0.12 -0.01 0.24EPS Actual 0.22 0.16 0.05 0.25Revenue Estimate 5.25 B 5.38 B 5.40 B 7.52 BRevenue Actual 5.53 B 5.26 B 5.36 B 7.46 B

Stock Performance

Shares of Schlumberger were trading at $25.75 as of April 21. Over the last 52-week period, shares are up 57.47%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Schlumberger is scheduled to hold the call at 09:30:00 ET and can be accessed here.