SLB Stock Jumps on Earnings, Dividend Hike and Buyback News
SLB stock is soaring Friday after the energy firm reported strong fourth-quarter earnings and unveiled several shareholder-friendly initiatives.


SLB (SLB) is one of the best S&P 500 stocks Friday after the oilfield services company beat top- and bottom-line expectations for its fourth quarter, raised its dividend payout and announced a $2.3 billion accelerated share repurchase program.
In the three months ending December 31, SLB revenue increased 3.3% year over year to $9.3 billion. Its earnings per share (EPS) were up 7% from the year-ago period to 92 cents.
"2024 was a strong year for SLB as we successfully navigated evolving market conditions to deliver revenue and EBITDA [earnings before interest, taxes, depreciation and amortization] growth, margin expansion and solid free cash flow," said SLB CEO Olivier Le Peuch in a statement.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Le Peuch also noted that adjusted EBITDA grew 12% year over year and the company generated nearly $4 billion in free cash flow, which enabled SLB "to return $3.27 billion to shareholders and reduce net debt by $571 million."
The results beat analysts' expectations. Wall Street was anticipating revenue of $9.2 billion and earnings of 90 cents per share, according to MarketWatch.
SLB's shareholder-friendly moves
"Given our confidence in the business outlook and our ability to continue generating strong cash flows, we are pleased to announce that our Board of Directors has approved a 3.6% increase to our quarterly dividend," Le Peuch said.
SLB’s new quarterly dividend rate is 28.5 cents per share and the first payment will come on April 3 to shareholders of record at the close of business on February 5.
Le Peuch added that because the company believes its stock is undervalued at current, levels "we entered into accelerated share repurchase (ASR) transactions to repurchase $2.3 billion of our company's common stock."
Under the accelerated share repurchase program, which SLB entered into on December 20, it received 80% of the shares on January 13 and expects the remainder of the shares to be purchased no later than the end of May 2025.
Stock buybacks are another way for corporations to boost value for shareholders. As Kiplinger contributor Mark Hake explains in his piece on "What Is a Stock Buyback," a company "that buys back its shares will produce a higher stock price because as its shares count falls, it forces the price higher."
Hake goes on to explain "that effect produces more value for shareholders, as they pay no taxes on this unrealized gain (until they sell shares)."
Is SLB stock a buy, sell or hold?
SLB has lagged the broader market over the past 12 months, down 13% on a total return basis (price change plus dividends) vs the S&P 500's 26% gain. Yet Wall Street remains bullish on the energy stock.
According to S&P Global Market Intelligence, the average analyst target price for SLB stock is $53.73, representing implied upside of more than 20% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Jefferies is one of the more bullish outfits on SLB with a Buy rating and a $61 price target.
"With its significant scale, we believe SLB is poised to benefit from continued strengthening business dynamics driven by increased demand on an expected momentum in international activity (Middle East in focus)," wrote Jefferies analyst Lloyd Byrne in a January 3 note. "Overall, we expect continued industry-leading margins, robust FCF and solid shareholder returns in the upcoming years."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: Dow Nears Record High After Verizon Earnings
The Nasdaq also notched a new high on Monday, while the Dow finished with a marginal loss.
-
I Live Next to a Costco Business Center. Here Are 5 Things You Won't Find at a Costco Wholesale
You don't need to own a business to shop at a Costco Business Center. Here are five reasons to visit the one near you.
-
Stock Market Today: S&P 500 Hits High After Verizon Earnings
The Nasdaq also notched a new high on Monday, while the Dow finished with a marginal loss.
-
What Will the Fed Do at Its Next Meeting?
Rate cuts remain on hold this summer, experts say.
-
Take It From a Tax Attorney: This Is a Magic Multimillion-Dollar Tax-Saving Strategy
The qualified small business 1202 stock exemption is a $10 million exclusion that seems too good to be true and is often overlooked.
-
What Would You Like to Leave Behind? A Financial Planner's Guide to Family Wealth Discussions
Communicating about your assets and plans for passing them on increases clarity while preventing surprises and family disputes.
-
The Dollar Index Is Sliding. Is Your Portfolio Prepared?
The dollar's fall has been troubling because inflation appears to be constrained and the economy has been strong. Here's what it means for investors.
-
Seven Financial Considerations When Downsizing for Retirement
With prices going up on everything, you may be looking for a cheaper place to live. To truly evaluate costs, take a hard look at taxes and intangibles.
-
I Have Plenty of Money: Why Do I Need a Long-Term Care Plan?
Long-term care planning, whether through insurance or self-funding, is crucial not only for financial protection but also to preserve family relationships and reduce the emotional and logistical burdens on loved ones.
-
The GENIUS, CLARITY, and Anti-CBDC Acts: What Bitcoin Investors Need to Know
Movement on the crypto front at the federal level has the potential to usher in substantial change. Here's what it means for your portfolio.