Schlumberger is one of the great, worldwide oil services companies, TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment. The stock ran from $67 to $78 in anticipation of a great quarter and the company delivered a good quarter, he explained.
Earnings of 48 cents per share came in 4 cents per share ahead of estimates, while sales grew 15% year-over-year.
However, it's the conference call that's proving key. Cramer said first-quarter results would be uninspiring, something investors already knew. However, the rest of the year will be very good and investors selling the stock right now must not be taking that into consideration.
"You can sell it down to $71 if you want to, but you're missing the big picture," Cramer argued. "People are going to need Schlumberger again."
The company is buying back stock and going to an asset-light business model, added Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
Don't forget about this management team either. They essentially nailed the top and the bottom in oil prices. Strong demand for oil on the back of a robust global economy, in combination with a larger-than-expected drawdown in oil inventories should propel oil prices higher, Cramer concluded.
After fighting higher throughout Friday's session, Schlumberger stock closed at $76.42, up 0.065%. Looks like investors listened to that conference call after all.
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At the time of publication, Cramer's Action Alerts PLUS had a position in SLB.