SLB Predicted to Report Lower EPS in 2025 Despite Analysts' Positive Outlook
Analysts forecast SLB N.V. (SLB), a leading global oil-field services company, to report earnings per share (EPS) of $2.89 for the full fiscal 2025, a 15.3% decrease year-over-year. This follows a decline in demand for oil-field services due to soft commodity prices, macroeconomic headwinds, and weak exploration budgets. SLB's share price has also lagged behind the broader energy sector.
The company, with a market capitalization of $53.9 billion, has flagged a downturn in upstream spending, particularly in North and Latin America. Despite these challenges, analysts remain optimistic. The mean price target of $46.68 suggests a 29.5% premium to current levels, with the Street-high target indicating a potential 127.4% upside. The stock has a consensus 'Strong Buy' rating, with 16 'Strong Buys', four 'Moderate Buys', and three 'Holds' from covering analysts.
Rothschild Redburn initiated coverage on SLB with a 'Buy' rating and a $48 price target, praising its strategic shift towards less cyclical businesses. However, SLB has underperformed the Energy Select Sector SPDR Fund (XLE) in 2025 performance. The stock has declined 6% year-to-date and 10.2% over the past 52 weeks, trailing the S&P 500 Index.
SLB is expected to report lower EPS in 2025 due to industry headwinds. Despite this, analysts maintain a positive outlook, with a strong buy consensus and significant upside potential. The company's strategic shift is seen as a positive, but recent performance has lagged behind the broader energy sector.
