Schlumberger stock rallies after swinging to profit that beat expectations

Shares of Schlumberger Ltd.
SLB,
-1.58%

rallied 1.9% in premarket trading Friday, after the oil services company reported second-quarter profit and revenue that beat expectations, and said it expects the momentum of international activity growth is likely to continue in the face of concerns over potential resurgence of COVID-19-related disruptions. The company swung to net income of $431 million or 30 cents a share, from a loss of $3.43 billion, or $2.47 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 30 cents topped the FactSet consensus of 26 cents. Revenue rose 5% to $5.63 billion, above the FactSet consensus of $5.51 billion. All business segments topped revenue expectations, with revenue up 32% for digital and integration, up 8% for production systems and up 1% for well construction, but down 4% for reservoir performance. “[W]e believe the momentum of international activity growth that we experienced in the second quarter will continue as the cyclical recovery unfolds,” said Chief Executive Olivier Le Peuch. “This view is supported by rig count trends, capital spending signals, and customer feedback.” The stock has run up 28.2% year to date through Thursday, while the VanEck Vectors Oil Services ETF
OIH,
-1.85%

has climbed 23.8% and the S&P 500
SPX,
0.20%

has advanced 16.3%.