Schlumberger(SLB) ZACKS·2025-01-14 20:46Earnings and Financial Performance - SLB is set to report Q4 2024 results on Jan 17, 2025, with an Earnings ESP of -1.39% and a Zacks Rank 5 (Strong Sell) [1][2] - The Zacks Consensus Estimate for Q4 earnings is 90 cents per share, implying 5% growth YoY, while revenues are estimated at 683.5 million, down from 71.99 (Oct), 70.12 (Dec) per barrel, but drilling activities declined in both domestic and international markets [3] - International rig count decreased to 926 in Q4 from 937 in Q3 and 965 YoY, while North American rig count fell to 782 from 796 in Q3 and 803 YoY [4][9] - The slowdown in drilling activity is reducing demand for SLB's services as upstream companies focus more on stockholder returns than production expansion [16] Valuation and Stock Performance - SLB's stock has lost 18.7% in the past year, underperforming the industry's 4.8% gain and Halliburton's 17.6% decline [14] - The company appears overvalued with a trailing 12-month EV/EBITDA ratio of 7.44, above the industry average of 6.89 [15] Business Risks and Dependencies - SLB's heavy reliance on international markets, particularly the Middle East, exposes it to significant geopolitical and operational risks [12] - The company's future growth is highly dependent on customer capital expenditures, which tend to decline during economic downturns [16]