(SLB) - Top Stock Pick Schlumberger exceeded analysts' earnings expectations for the past seven quarters

Schlumberger Limited (SLB), a Zacks #1 Rank stock, topped the Street's earnings estimate for seven straight quarters by an average margin of 9.5%. Earnings per share are projected to grow 22.7% over the next 3-5 years. Consensus estimates have been trending higher. SLB has a current dividend yield of 0.75% and a five-year average dividend yield of 1.3%. Full Analysis Schlumberger Limited is an oilfield services company, operating under two segments, Schlumberger Oilfield Services and WesternGeco. SLB exceeded analysts' earnings expectations for the past seven quarters by an average margin of 9.5%. Earnings per share grew an impressive 28.1% over the past five years and are forecasted to grow 22.7% over the next 3-5 years. On Jul 21, the company beat the Street's second quarter earnings estimate by 15.9% when it reported profits of 73 cents per share. When compared to the 39 cents earned in the prior-year period, earnings soared 87.2%. Operating revenues climbed 36.7% to $4.69 billion. Split up by business segment, oilfield services jumped 35.9% while WesternGeco revenue rose 46.7%. Looking ahead, SLB sees continued strong sequential growth rates for the remainder of 2006, especially in the Eastern Hemisphere. Analysts are also optimistic about the company's future earnings potential. Consensus estimates for this quarter and next have risen 8.7% and 6.7%, respectively, over the past 30 days. Nine analysts upped their estimates for both quarters. Profit forecasts for this year and next jumped 6.4% and 4.9%, respectively, over the same period of time and reflect upward revisions by nine analysts as well. The Board of Directors recently declared a quarterly dividend of 12.5 cents per share. The dividend is payable on Oct 6 to stockholders of record as of Sep 6. SLB has a current dividend yield of 0.75% and a five-year average dividend yield of 1.3%. SLB announced a new 40 million-share repurchase program in the first quarter of 2006. During the second quarter, the company repurchased 3.6 million shares for a total amount of $213 million. SLB's return on equity exceeds that of the industry average—35% compared to 23%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home