Schlumberger's Profit Falls Short

Still, shares rise after the company sets a big buyback.
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Oil-services firm

Schlumberger

(SLB) - Get Report

announced Friday that its profits for the first quarter jumped 14%, but its results missed analysts' estimates for the period.

However, the company's investors weren't entirely disappointed, as Schlumberger's board approved a new $8 billion stock repurchase for the next three and a half years. Shares of Schlumberger were recently trading 4.4% higher at $99.49.

For the quarter, the company generated net income of $1.34 billion, or $1.09 a share, compared to 96 cents a share in the same quarter of 2007. Revenue for the period was $5.6 billion, up 18% from a year ago. Wall Street analysts were expecting earnings of $1.11 a share, according to a survey conducted by Thomson Financial.

Schlumberger CEO Andrew Gould said that the earnings miss was caused by weather-related downtime in Asia and lower product and software sales.

North American revenue increased 3% year on year to $1.4 billion. Latin American revenue jumped 27% to $922 million, while revenue from operations in Europe and Africa rose 24% to $1.9 billion. Sales from operations in the Middle East and Asia were up 22% to $1.3 billion.

During the quarter, Schlumberger repurchased 7 million shares at a total cost of $564 million.

Schlumberger was the first major oilfield-services firm to report earnings for the first quarter.

Halliburton

(HAL) - Get Report

is due to report earnings on April 21, and

Baker Hughes

(BHI)

will issue its numbers April 22.