Schlumberger shares fall on dismal 2008 outlook

Shares of the Houston-based company lost as much as 12 percent, reaching a three-year low of $38.63 in morning trading. By midday, shares recovered some of the loss, falling $2.34, or 5.3 percent, to $41.61. Shares have shed nearly two-thirds of their value since peaking at a 52-week high of $111.95 in July.

The company did not specify the extent to which results will miss estimates. Analysts surveyed by Thomson Reuters have forecast full-year profit of $4.76 per share on revenue of $27.67 billion, on average.

Schlumberger said it has taken a beating from the global economic slowdown and its effect on oil and gas exploration spending.

Mike Urban, an analyst with Deutsche Bank, said Schlumberger and the oil services sector will likely "continue to struggle until the market gets a better sense of how long and how deep the downturn will be." He currently forecasts full-year profit at $4.80 per share, but added that he will wait for outlook details from Schlumberger before reviewing his estimates.