1. SLB missed Q1 earnings expectations, reporting 72 cents EPS. 2. West Texas Intermediate crude prices dropped 14% since January 1. 3. SLB shares fell 1.2% to $34.50 in premarket trading. 4. Stock has declined 17% over the past month. 5. SLB competes with Halliburton, Liberty Energy, and Baker Hughes.
The earnings miss coupled with falling oil prices suggest decreased profitability, historically aligning with stock declines in oil service firms. Past occurrences, like the 2020 oil crash, showed significant stock price impacts on similar companies.
The earnings miss directly affects investor sentiment and SLB's valuation. With significant exposure to volatile oil prices, any analyst downgrade or bearish outlook could lead to further declines.
Earnings results typically affect stock prices immediately. The current negative sentiment due to lowered earnings expectations will likely persist in the near term.