SLB Stock Declines After Q3 Earnings Report: Retail Remains Resilient

Shares of the world’s largest oilfields services company SLB ($SLB) fell over 4% on Friday after the firm reported its third-quarter results that saw revenue fall short of estimates.

Revenue rose 9% year-on-year (YoY) to $9.16 billion in Q3 compared to Wall Street estimates of $9.3 billion. Earnings per share (EPS) stood at $0.89 versus an estimate of 0.88. Meanwhile, net income attributable to SLB rose 6% YoY to $1.19 billion during the quarter.

CEO Olivier Le Peuch said the firm’s earnings growth and margin expansion came in line with its full-year adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin goal of 25% or higher. SLB posted an adjusted EBITDA margin of 25.6%, registering a 55-bps sequential increase.

“These results were achieved by our ongoing focus on cost optimization, greater adoption of our digital products and solutions, and the contribution of long-cycle projects in deep water and gas,” he said.

The CEO also noted that revenue grew in the Middle East and Asia and offshore North America but was offset by a decline in Latin America, while Europe & Africa held steady.

During the quarter, the company repurchased 11.3 million shares of its common stock for a total purchase price of $501 million. Meanwhile, the board has approved a quarterly cash dividend of $0.275 per share of outstanding common stock, payable on Jan. 9, 2025.

Following the announcement, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (57/100) from ‘bearish’ a day ago, accompanied by ‘extremely high’ message volumes.

Stocktwits users with a bullish outlook on the firm are expressing optimism on the stock with some choosing to buy on dips.

Shares of SLB have lost over 18% since the beginning of the year.

Also See: Lamb Weston Stock Jumps As Activist Investor Jana Partners Reportedly Acquires Stake: Retail Stays Wary

For updates and corrections email newsroom@stocktwits.com

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