Oil Services ETFs To Watch On Schlumberger Limited. Earnings [Market Vectors Oil Services ETF]

oil rig spillThe oil-field services industry has been pushed down sharply in the Zacks Industry Rank list and presently stays in the bottom 7% thanks to lower oil prices and the taper-backed recent strength in the greenback.

Despite this negative backdrop, the sector kicked off this earnings season on a decent note. A gradual pickup in the global economy might be credited for this nice beginning to this in-focus sector.

The sector bellwether, Schlumberger Ltd. (NYSE:SLB), came out with solid numbers on January 17, signaling that some ETFs that have high exposure in this company might be interesting plays, especially if the oil service sector is on the verge of turning around.

Schlumberger 4Q Earnings in Details

The world’s largest oilfield services provider dished out a decent Q4 by reporting adjusted earnings of $1.35 per share (excluding special items), which beat the Zacks Consensus Estimate of $1.33 and the year-ago number of $1.04.

Total revenue of $11.9 billion was up 7.4% from the year-earlier level of $11.1 billion and in line with the Zacks Consensus Estimate. The company’s strong international exposure, especially surging demand from the Middle East and Asia, and stepped-up activity in the U.S. Gulf of Mexico which is making up for the reduced onshore activity, helped it to stand out in the energy equities space.

Hopes are building up as we look into Schlumberger’s overall outlook for 2014, especially from foreign markets.  Also, a day before the earnings release, Schlumberger announced a 28% hike in quarterly dividend adding to investors’ optimism.

Market Impact

Quite expectedly, the company’s strong earnings had a positive impact on the sector, as SLB shares were up 1.81% on the day with elevated volumes of roughly two times a normal day. The increased trading could have a huge impact on ETFs that are heavily invested in this renowned oil-service company.

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