After competitors like Halliburton (NYSE:HAL) and Weatherford (NYSE:WFT) exceeded analysts' expectations earlier in the week, Schlumberger (NYSE:SLB) had pressure to perform strongly as well, but were only able to meet expectations, not surpass, causing the share prices to drop on what was perceived as disappointing news.
Even the 33 percent increase in earnings to $818 million, or 68 cents a share, wasn't enough to get investors excited, as revenue wasn't able to even meet expectations, reaching $5.94 billion for the quarter.
The Obama administration moratorium did hurt Schlumberger more than some rivals, as they figured it cost them close to 2 cents a share for the quarter, and with the ongoing ban, will cost them from 8 to 12 cents a share in the second half.
With expectations high after other strong industry performances, and solid numbers for the last four quarters, Schlumberger was expected to exceed, rather than just meet, expectations, causing the disappointment from the market.
Schlumberger plunged to $58.91 as of 3:40 PM EDT, dropping $2.39, or 3.90 percent.
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