Schlumberger (OP/A): Ex-hurricane, 3Q EPS ahead of expectations - Goldman Sachs - October 21, 2005
SLB recurring 3Q2005 EPS of $0.86 was in line with our estimate and consensus, but included $0.06 of hurricane impact vs our assumption of zero. On an apples basis, therefore, results were stronger with oilfield revenue ex-hurricane +4% vs our estimate and pretax income +5%. Results were stronger across all regions with Europe/ Africa/ CIS the star performer w/ revenue +8% + pretax income +16% vs expectations (PetroAlliance impact?). Oilfield incremental margins ex-hurricane of 33% /46% seq/ y-y were strong, but still have upside, in our view, particularly in N. America. Seismic revenue ex-hurricane was +17% vs our estimate and pretax profit was +45 with positive implications for BHI. Other income was also stronger = positive read across for SII. We maintain our OP/A rating with upward EPS revisions pending - $108 fair value.
Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Jason Gilbert, Terry Darling.
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Previous Goldman Sachs remarks on Schlumberger:
SCHLUMBERGER (OP/A): Raising estimates + fair value to $107
Goldman Sachs July 24, 2005
Message 21537995
SCHLUMBERGER (OP/A): The quarter we've all been waiting for
Goldman Sachs July 22, 2005
Message 21532984
SCHLUMBERGER (OP/A): No one cares about earnings - why? April 26, 2005 - Goldman Sachs
Message 21269177 |
