SLB reports Q2 tomorrow at 9am: SLB Preview: Good for the Long Haul
Schlumberger, the premier oilfield services company, is scheduled to report its second-quarter results and conduct its quarterly conference call before the market opens on Friday. The company is expected to earn $1.12 per share on revenue of $6.48 billion. In the year-ago quarter, Schlumberger earned $1.02 on revenue of $5.64 billion. Just yesterday, Morgan Stanley raised its 2010 price target on Schlumberger to $155 from $145. The analyst report started by saying, "Structurally positive fundamentals in the global oil services space, at a time of broad based stock market turmoil, has provided a series of attractive entry points." I fully agree with this assessment on the space. Here are a few points I want to highlight in making the bullish case for Schlumberger: Rig counts are on the rise, and my research indicates that 2008 will be back-end loaded. This is going to provide huge bottom-line benefits.Additionally, Jefferies believes Schlumberger's entire sector is oversold going into Q2 results.