Schlumberger (SLB) announced a positive performance in the first quarter of 2024, with net income rising to $1.068 billion, marking a substantial increase from the previous year's earnings of $0.63 per share. The company's adjusted earnings reached 75 cents per share, exceeding the Zacks Consensus Estimate of $0.74 and showcasing an earnings surprise of 1.35%. This performance represents a continuation of the company’s ability to surpass consensus EPS estimates, having done so for the fourth consecutive quarter.

Despite a sequential decline in revenue, Schlumberger's financial health showed significant year-over-year improvement, with revenue climbing to $8.71 billion from $7.74 billion in the year-ago period. This growth was primarily fueled by strong international drilling demand, particularly noticeable in the evaluation and stimulation activities in international markets, including the Middle East and Asia. Approximately half of this revenue growth can be attributed to the Aker subsea business integrated through the OneSubsea joint venture in the fourth quarter of 2023.

Segment-wise, Schlumberger witnessed notable performances across its diverse operations. The Digital & Integration unit saw revenues up by 7% year over year, albeit with a slight dip in pre-tax operating income. The Reservoir Performance and Well Construction segments reported revenue increases of 15% and 3%, respectively, with respective boosts in pre-tax operating income. The Production Systems segment experienced a remarkable 28% revenue growth from the previous year, thanks to robust sales in midstream, artificial lift, and subsea production systems.

However, the company reported a negative free cash flow of $222 million for the quarter. As of March 31, 2024, Schlumberger had approximately $3.49 billion in cash and short-term investments, with a long-term debt of $10.74 billion.

Looking forward, Schlumberger has reaffirmed its guidance for mid-teens EBITDA growth for the full year of 2024, with a planned capital investment equalling the previous year's $2.6 billion. This strong outlook is supported by the expected continuing strong international demand for its services, despite challenges in North America.

SLB shares have experienced a slight decline since the beginning of the year, underperforming against the S&P 500's gain. However, the company's strong quarterly earnings, revenue growth, and strategic investments in operations such as the Aker subsea business position Schlumberger well for future success. Despite current market performance, investors and analysts may look favorably on Schlumberger’s capabilities to navigate the fluctuations in the oil and gas industry, leveraging its global presence and technological advantages.