SLB To Report Lower Q2 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Schlumberger (SLB) is scheduled to report Q2 earnings on July 18, with analysts anticipating a year-over-year decline in both EPS to 75 cents and revenue to $8.51 billion, following a weaker-than-expected Q1. This tempered outlook is underscored by recent analyst activity, where multiple firms, including Barclays, Susquehanna, J.P. Morgan, Jefferies, and Wells Fargo, have maintained positive ratings (Overweight/Buy) but concurrently reduced their price targets, signaling cautious sentiment despite their long-term views.

Analysis

Schlumberger (SLB) is approaching its second-quarter earnings release with decidedly cautious market expectations. Analysts project a year-over-year decline in both revenue, to $8.51 billion from $9.14 billion, and earnings per share, to $0.75 from $0.85. This anticipated weakness follows a worse-than-expected performance in the first quarter of 2025, suggesting potential ongoing headwinds for the company. A significant indicator of this tempered outlook is the recent activity from several analysts with high accuracy ratings. While firms including Barclays, Susquehanna, JP Morgan, Jefferies, and Wells Fargo have all maintained their positive long-term ratings such as 'Overweight' or 'Buy', they have concurrently lowered their price targets. For instance, Wells Fargo cut its target from $46 to $43, and Jefferies reduced its target from $54 to $53. This pattern indicates that while analysts may still view the company's long-term fundamentals favorably, their near-term conviction has been reduced, likely in response to the factors driving the negative quarterly forecast.

Key Decisions for Investors

• Investors should weigh the conflicting signals of maintained 'Overweight' and 'Buy' ratings against the recent, broad-based cuts in analyst price targets, which suggest near-term risk and tempered expectations.
• The upcoming Q2 earnings report is a critical catalyst; a failure to meet the already lowered consensus of 75 cents EPS and $8.51 billion in revenue could lead to further downward revisions and stock price pressure.
• Despite the cautious sentiment, the revised price targets still sit significantly above the current stock price of $34.67, potentially presenting an opportunity for long-term investors if the company can outperform lowered expectations or provide a strong forward-looking outlook.