Hold Schlumberger (SLB)
Schlumberger (SLB) reported earnings that met estimates this morning, but revenue fell short of expectations and the stock is about 3% lower mid-morning.
Sales rose for the first time in two years, as expected. However, the 5.7% year-over-year growth was slower than hoped. Analysts were expecting sales to rise by closer to 7%, to nearly $7 billion. Schlumberger’s first-quarter revenue of $6.89 billion fell over $100 million short, due to larger-than-anticipated seasonal slowdowns in China, Russia and the North Sea.
EPS of $0.25 met expectations though, declining about 35% year-over-year.
We’ve been considering selling SLB for the past few weeks, disappointed by the stock’s lack of momentum even as oil prices have rebounded. We have a mental stop in place around 75, where the stock bounced in June and September. Right now, SLB is trading below that level. If it closes below 75, we’ll sell on Monday.