Halliburton Earnings: Investors Impressed By Top-Line Growth

S&P 500 (NYSE:SPY) component Halliburton Company (NYSE:HAL) reported its results for the third quarter. Halliburton provides oilfield technologies and services to upstream oil and gas customers worldwide.

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Halliburton Company Earnings Cheat Sheet

Results: Net income for the oil-field services fell to $602 million (65 cents per share) vs. $683 million (74 cents per share) a year earlier. This is a decline of 11.9% from the year-earlier quarter.

Revenue: Rose 8.6% to $7.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Halliburton Company fell short of the mean analyst estimate of 75 cents per share. It beat the average revenue estimate of $6.96 billion.

Quoting Management: “I am pleased with the strengthening of our market position in key international geographies and in product lines where we envision strong growth in the coming years,” commented Dave Lesar, chairman, president and chief executive officer.”We believe our international strategy is playing out as planned, as evidenced by our third quarter record revenue for both the Latin America and the Middle East/Asia regions. From a global perspective, our Drilling & Evaluation division posted record revenue for the quarter. We also achieved third quarter record revenue in four of our product service lines – Boots & Coots, Wireline and Perforating, Consulting and Project Management, and Baroid, which also had a record quarter for operating income.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 21.9% to $7.23 billion in the second quarter. The figure rose 30% in the first quarter from the year earlier and climbed 36.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 0.3% from the year-earlier quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by one cent.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 88 cents a share to 76 cents over the last ninety days. At $3.22 per share, the average estimate for the fiscal year has fallen from $3.60 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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