Oilfield service leader Schlumberger's (SLB) fourth-quarter earnings beat analyst expectations Friday, following Thursday's mixed report from Baker Hughes (BKR). Both BKR stock and SLB stock traded traded just below buy points. Show X Schlumberger reported an 86% jumping earnings to 41 cents per share with revenue up 13% to $6.22 billion. Analysts were expecting EPS of 39 cents with revenue of $6.08 billion. International revenue of rose 5% quarter-over-quarter to $4.9 billion on stronger activity while North American revenue climbed 13% on the quarter to $1.28 billion, outpacing rig count growth. "Looking ahead into 2022, the industry macro fundamentals are very favorable, due to the combination of projected steady demand recovery, an increasingly tight supply market, and supportive oil prices," said CEO Olivier Le Peuch in the earnings release. "We believe this will result in a material step up in industry capital spending with simultaneous double-digit growth in international and North American markets." Also, the company sees oil demand exceeding pre-pandemic levels before the end of the year, barring any Covid-19 related disruptions. Oilfield Service Outlook: Capital Spending Expected To RiseCapital spending has been a major topic in the oil and gas industry over the last two years. Publicly held energy companies, from the oil majors to U.S. independent producers, have said they will remain capital disciplined in 2022. That means keeping spending focused on their balance sheets and on returning value to shareholders, rather than on increasing production. Meanwhile, private producers appear to be hustling to increase output. During its earnings call, Le Peuch said that Schlumberger sees a "substantial step up in capital spending" amid shrinking spare capacity and declining inventory this year. It expects at least a 20% increase in capital spending in North America where it sees the completion of more DUCs, drilled but uncompleted wells. It sees 2022 total capital investments to be $1.9 vs. $1.7 billion in 2021. That points to at least a modest improvement for oilfield service providers. Output out of the prolific Permian basin soared to a record 4.92 million barrels per day in December, according to the Energy Information Administration. In addition, total U.S. rig counts are up by 228 year over year, to 601, according to data from Baker Hughes released on Jan. 14. Schlumberger shares fell 1.9% to 36.36 on the stock market today. SLB stock closed Thursday at 37.05, above its 36.97 buy point from a long consolidation. SLB stock ranks third in IBD's Oil & Gas-Field Services group. Baker Hughes EarningsOn Thursday, Baker Hughes reported revenue of $5.5 billion, meeting analyst expectations. Adjusted diluted earnings came in at 25 cents per share — a big year-over-year jump, but below analysts' targets of 28 cents. In the earnings release, CEO Lorenzo Simonelli projected that the pace of global economic growth to remain strong in 2022, "although slightly moderate compared to 2021. We believe the broader macro recovery should translate into rising energy demand for 2022 and relatively tight supplies for oil and natural gas," a positive environment for Baker Hughes' oilfield service markets. Stock: Shares rose 2% to 27.24 Friday. BKR stock had briefly moved above its 27.76 buy point in Thursday's trading. Halliburton (HAL) will announce Q4 results before the market opens on Jan. 24. Follow Gillian Rich on Twitter for energy news and more. YOU MIGHT BE INTERESTED IN: Is Chevron Stock A Buy Right Now? Here's What Earnings, Stock Chart Show Catch The Next Big Winning Stock With MarketSmith Get The Latest News About Oil Stocks And The Energy Industry Futures Fall As Netflix Crashes; Market Reversals Teach Hard Lesson
Transocean (RIG) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -90%. A quarter ago, it was expected that this offshore oil and gas drilling contractor would post a loss of $0.16 per share when it actually produced a loss of $0.19, delivering a surprise of -18.75%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Transocean , which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $671 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 0.44%. This compares to year-ago revenues of $690 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Transocean shares have added about 21.4% since the beginning of the year versus the S&P 500's decline of -8.8%. What's Next for Transocean? While Transocean has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Transocean: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.18 on $637.37 million in revenues for the coming quarter and -$0.58 on $2.67 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ranger Oil (ROCC), another stock in the broader Zacks Oils-Energy sector, has yet to report results for the quarter ended December 2021. This company is expected to post quarterly earnings of $1.74 per share in its upcoming report, which represents a year-over-year change of +21.7%. The consensus EPS estimate for the quarter has been revised 5.6% higher over the last 30 days to the current level. Ranger Oil's revenues are expected to be $189.5 million, up 182.8% from the year-ago quarter.
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What were q4 profits for 2022 of rig
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