www.jpmorganmarkets.comNorthAmericaEquityResearch15April2019OilServices&Equipment1Q19EarningsPreviewPartI:Setups,Hurdles&QuickTakesOilServicesandEquipmentSeanCMeakim,CFAAC(1-212)622-6684sean.meakim@jpmorgan.comBloombergJPMAMEAKIMAndrewPHerring,CFA(1-212)622-8585andrew.p.herring@jpmorgan.comAaronRosenthal,CFA(1-212)622-5828aaron.rosenthal@jpmorgan.comJ.P.MorganSecuritiesLLCSeepage63foranalystcertificationandimportantdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.With1Q19oilservicesearningssettogetunderwayatouchearlythisThursdayasSLBreportspriortoGoodFriday,we’vecompiledacomprehensiveguideforhowwe’dbepositionedintothefirsthalfofthegroup’sprints,wherewethinkbuysideandsellsideexpectationsdeviate,andwhatpotentialcatalystswe’rewatchingforonthecalls.Inour“early”installment,weprovidepreviewsforthe17coveredcompaniesreportingresultsthroughmostofApril,withmorein-depthsummariesofourthoughtsandestimatesv.consensusintheinterior.Afteradecidedlyquiet1Q,weareprobablymoreoptimisticaboutthissetofprintsaswe’veeverbeensinceourMay2015launch.Andyet,Friday’snegativepreannouncementfromNOV(-8%v.–1%OSX)ifanythingreinforcedthespecterof“austerity”continuestopenetratedeeperintotheupstreamsupplychain.Thoughweexpectsellsidenumberswilldriftlowerduring1Qpreviewandreviewseason(includingseveralofourownmodels),oil’sYTDrise(+41/33%WTI/Brent)supportsthebuyside’sdesiretobuy“thelastcut”.ThoughL-48activityin2H19remainsuncertain,thosearequestionstobesortedclosertomidyear(perhapsatourJuneEnergyConference).Belowweprovide“oneliners”onall17previewsinthisreport,categorizedbyourexpectedmarketreactiontotheprintsandhowwe’drespond.1Q19OneLinersPositive:SLB:1Qlooksinlinewithpreliminary$0.30-0.33EPSguidebutbeatlikelycontained;2Qlikelygetsblessedbutcommentaryarou...
