Schlumberger Limited (NYSE:SLB) is set to kick of Q2 earnings season for oil & gas equipment and services stocks on Thursday. Heres a breakdown of what to expect from Schlumberger and the rest of the industry this quarter.
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According to Estimize, Wall Street is looking for EPS of $0.79 from Schlumberger on revenue of $9.15 billion for the quarter. If Schlumberger hits that mark, it would represent a 3.9 percent quarter-over-quarter growth in earnings, but a 34.7 percent decline from Q2 2014s $1.21 EPS for the company.
Despite the fact that Schlumbergers stock is down more than 27 percent over the past year, the stock has reacted positively to six of the companys last eight earnings reports by trading higher on the following trading day. In fact, the only two times Schlumbergers stock has traded down on the day following earnings were less than 2.0 percent drops following Q1 and Q2 earnings in 2014.
Schlumbergers largest positive reaction was 6.1 percent move following Q4 2014s report. Overall, Schlumberger is averaging a 2.23 percent return on the day following its last eight earnings reports.
Looking For A Turnaround
Its not just Schlumberger shareholders that will be watching closely on Thursday.
Oil & gas equipment and services investors are hoping that Q2 numbers will provide a catalyst to reverse the industrys underperformance so far in 2015. Year-to-date, the Market Vectors Oil Services ETF (NYSE:OIH) is down 8.2 percent.
Halliburton Company (NYSE:HAL) reports on July 20, Baker Hughes Inc (NYSE:BHI) reports on July 21 and National Oilwell Varco Inc (NYSE:NOV) reports on July 28.
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