SLB Earnings: Higher International Activity and Digital Product Adoption Drive Strong Period

Narrow-moat SLB delivered solid second-quarter results, mainly because of its heavier exposure to non-North American end markets, where demand for oilfield services was strong. Compared with last quarter, total sales increased by 5%, and the firmwide adjusted EBITDA margin expanded by over 100 basis points to 25%. On a year-over-year basis, revenue and margins increased by 13% and 50 basis points, respectively. We'll incorporate the firm's full financial and operating results shortly, but after this first look, we maintain our $60 fair value estimate.