Halliburton Earnings Cheat Sheet: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component Halliburton Company (NYSE:HAL) reported higher profit for the third quarter as revenue showed growth. Halliburton provides oilfield technologies and services to upstream oil and gas customers worldwide.

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Halliburton Company Earnings Cheat Sheet for the Third Quarter

Results: Net income for the oil and gas equipment and services company rose to $683 million (74 cents per share) vs. $544 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 25.6% from the year earlier quarter.

Revenue: Rose 40.4% to $6.55 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HAL reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 92 cents per share. It beat the average revenue estimate of $6.38 billion.

Quoting Management: “I am extremely pleased with our third quarter results, as we set company records for revenue and operating income. North America continues to deliver very strong growth in revenue and profitability, while international profitability recovered at the rate we expected. Compared to the second quarter, our Completion and Production division grew revenue and operating income by 11% and 16%, respectively, and our Drilling and Evaluation division grew revenue and operating income by 9% and 14%, respectively,” said Dave Lesar, chairman, president, and chief executive officer.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 37.2%, with the biggest boost coming in the first quarter when revenue rose 40.4% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 54% and in the first quarter, the figure rose more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 9 cents in the second quarter, by 3 cents in the first quarter, and by 5 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 91 cents a share to $1.03 over the last ninety days. For the fiscal year, the average estimate has moved up from $3.07 a share to $3.36 over the last ninety days.

Competitors to Watch: Baker Hughes Incorporated (NYSE:BHI), Schlumberger Limited. (NYSE:SLB), Weatherford Intl. Ltd. (NYSE:WFT), Cameron Intl. Corp. (NYSE:CAM), Complete Production Services, Inc. (NYSE:CPX), TETRA Technologies, Inc. (NYSE:TTI), RPC, Inc. (NYSE:RES), Helix Energy Solutions Group Inc. (NYSE:HLX), Oceaneering International (NYSE:OII), and National-Oilwell Varco, Inc. (NYSE:NOV).

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(Source: Xignite Financials)

 

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