Analyst Note| Preston Caldwell |
Schlumberger posted 5% sequential revenue improvement in the fourth quarter, lead by a 13% improvement in North America markets, driven by a rebound in industry activity. International revenue was up 3%, actually outperforming peers' international results, which have been flat-to-down so far. Adjusted EBITDA margins improved to 20.1% from 19.4% in the prior quarter and impressively stand about flat versus year-ago (i.e. pre-pandemic) levels. This strong bottom-line performance is attributable to aggressive cost-cutting. Our fair value estimate and narrow moat rating are unchanged following the results.