Why SLB Is Rising Today

Oilfield services giant Schlumberger (SLB) is climbing 7% today after the company reported better-than-expected fourth-quarter results this morning.

A Look at SLB’s Q4 Results and Comments

SLB’s revenue rose 3% versus the same period a year earlier to $9.28 billion. That was $100 million above analysts’ average estimate. The company’s earnings per share, excluding certain items, climbed 7% year-over-year to 92 cents. Analysts’ average estimate was 90 cents. SLB generated $2.39 billion of cash flow from its operations last quarter.

A row of massive oil rigs in a desert landscape, against a setting sun.

The company raised its quarterly cash dividend by 3.6% to $0.285 per share, and authorized a $2.3 billion share repurchase program.

“These results demonstrate SLB’s ability to deliver consistent financial performance despite moderating upstream investment growth, driven by our global scale, unmatched digital offerings and ongoing focus on cost optimization,” said CEO Olivier Le Peuch in a statement. “

The CEO added that the company’s overseas revenue had increased by 12% in all of 2024,

Also importantly, Le Peuch stated that SLB’s acquisition of ChampionX would ” strengthen our production and recovery capabilities, enabling us to deliver even greater value to our customers.”

The Price Action of SLB Stock

In the last month, the shares have jumped 20%. They are up 5% in the last three months., but they are down 11% in the last 12 months.

While we acknowledge the potential of SLB, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey