NEW YORK (TheStreet) -- Shares of Schlumberger (SLB) - Get Report were down in early afternoon trade on Wednesday following the company's update to investors on Tuesday at the Simmons European Energy Conference which indicated a decline in deep water activity.

After the update, RBC trimmed its per-share earnings estimates for the company in 2016, 2017 and 2018 to $1.04, $2.89 and $4.48, respectively from $1.18, $2.99 and $4.55.

"The driver is a more tepid third quarter outlook for the drilling and reservoir characterization segments vs. our prior expectations," the firm said in a note cited by Barron's.

Additionally, oil prices were falling on Wednesday after the Energy Information Administration reported that U.S. crude inventories grew by 2.3 million barrels last week, higher than the 900,000 barrel-build analysts had been expecting.

Crude oil was down 3.04% to $44.04 per barrel while Brent crude was sliding 2.56% to $47.13 per barrel this afternoon.

Schlumberger is a Houston-based technology and information solutions provider for the oil and gas industry.

(Schlumberger is a holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, poor profit margins and weak operating cash flow.

You can view the full analysis from the report here: SLB

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