With shares of Halliburton (NYSE:HAL) trading at around $39.72, is HAL an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
Halliburton recently beat estimates, but it’s the future that makes the stock appealing. For Q4, Halliburton had record revenue of $7.3 billion. EPS was down 26 percent year-over-year, but it still beat estimates, coming in at $0.63 per diluted share. FY2012 revenue was also a record at $28.5 billion.
In regards to 2013, margins are expected to improve, dividend increases and buybacks are highly likely, capital expenditures are expected to decrease, investments in deepwater technology will continue to pay off, and there will be strong growth overseas. Halliburton is also focused on international development in Russia, Australia, and China. The company is making a special and concerted effort to gain market share from competitors in Russia.
Let’s take a look at some important numbers for Halliburton so we can get a better idea of the big picture…