Shares of Schlumberger (SLB) were down 6% in midday trading Friday after the oil-services giant warned of lower profits in the fourth quarter due to a downturn in drilling activity throughout its global business.�
And at least one analyst says the profit warning has negative implications for other oil and natural gas services stocks.
In a press�release, Schlumberger�announced�that contractual delays combined with higher than usual seasonal slowdowns would result in a drop of earnings by five to seven cents a share.� The company added that�North America activity is weaker than anticipated on land in the US and Western Canada.
�Schlumberger will discuss final results of the fourth quarter in detail during its previously announced fourth quarter earnings conference call on Jan 13.
Meanwhile, other oil-services stocks were down slightly in the wake of the� profit-warning announcement. Shares of Halliburton (HAL)� and�Baker Hughes (BHI)�were down 0.5% and 2.66%, respectively, �in midday trading.
�Harry Mateer, a Barclays credit analyst, wrote that all three companies, along with seveal others, will be also under pressure because of drilling slowdowns. He did say that Weatherford International (WFT) would perform better than the rest, in part because of its relative loack of exposure to pressure pumping. Shares of Weatherford were up in midday trading.
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