Is Schlumberger Poised to Beat the Whisper Number?

Schlumberger (NYSE:SLB) is expected to report earnings on Thursday, July 17. The whisper number is $1.38, two cents ahead of the analysts’ estimate and showing limited confidence from investors. Schlumberger has a 61 percent positive surprise history, having topped the whisper in 19 of the 31 earnings reports for which we have data.

Earnings history:

- Beat whisper: 19 qtrs
– Met whisper: 1 qtrs
– Missed whisper: 11 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we analyze what happens when the company beats or misses the whisper number expectation.

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe:

SLB714A

The strongest price movement of +3.4 percent comes within thirty trading days when the company reports earnings that beat the whisper number, and +2.6 percent within five trading days when the company reports earnings that miss the whisper number. The overall average price move is ‘positive’ (beat the whisper number and see strength, miss and see strength) when the company reports earnings.