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.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
Should I Buy Stocks or Should I Buy Bonds Right Now?
Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Why Investing Abroad Could Pay Off
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?
Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.