Schlumberger Ltd. (SLB)

[Timothy Smith]

Schlumberger has reported earnings per share of $1.08, which beat analyst estimates by $0.02, due to its high operational efficiencies and strong growth in Middle East, Asia, Europe and Africa. The company registered revenues of $10.6 billion in Q32012, which missed analyst estimates by $70 million.

Its revenue has increased from $9.55 billion in Q32011 and $10.4 billion in Q22012. In our opinion, Schlumberger has properly utilized its liquidity in the third quarter by spending $80 million on its acquisition and $149 million on its share repurchase programs to maximize returns for its shareholders.

The company has capitalized on liquidity resulting from the sale of its fifty-six percent equity stake in CE Franklin (CFK) for an amount of $122 million. In order to capitalize on its future growth projects and meet financing needs, the company has issued $1 billion of 5-year notes at the rate of 1.25 percent, and $1 billion of 10-year notes at 2.4 percent.