Schlumberger (NYSE:SLB) slid soon after the bell, and after revenue came in slightly below analysts’ expectations in the third quarter.
The oilfield services provider posted $8.31 billion in revenue for the quarter, below the consensus estimate of $8.33 billion from analysts polled by LSEG, formerly known as Refinitiv. On the other hand. Schlumberger reported 78 cents earned per share, beating the analyst forecast by one cent.
SLB reported earnings growing 24% to 78 cents per share while revenue increased 11% to $8.31 billion. That marks the second straight quarter of slowing growth, in part due to tougher comparisons.
The vast majority of SLB’s sales came from its international work. SLB international revenue grew 12% to $6.61 billion while its North America segment totaled $1.64 billion, up 6% vs. last year but down 6% compared to last quarter.
Sales from its well construction segment totaled $3.43 billion in Q3, up 2% sequentially and a 11% increase year-over-year.
SLB Chief Executive Olivier Le Peuch in the earnings statement Friday said the company’s Q3 performance was propelled by “broad-based growth” across Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Indonesia, China and Malaysia.
On Tuesday, Barclays raised its price target on SLB stock to 75, up from 70, and maintained an overweight rating on the shares. The firm says the production-related spending cycle is still in the early stages. That’s a positive for the energy services sector.
Shares are up more than 12% in 2023. They fell $1.94, or 3.2%, to $58.03 Friday.