Halliburton Earnings: Profit Flows Above Estimate, Achieves Revenue RECORD

S&P 500 (NYSE:SPY) component Halliburton Company (NYSE:HAL) reported its results for the second 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 $737 million (80 cents per share) vs. $739 million (80 cents per share) a year earlier. This is a decline of 0.3% from the year-earlier quarter.

Revenue: Rose 21.9% to $7.23 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Halliburton Company reported adjusted net income of 78 cents per share. By that measure, the company beat the mean estimate of 75 cents per share. It beat the average revenue estimate of $6.95 billion.

Quoting Management: “I am pleased with our second quarter results, which set a new revenue record for the total company and all three of our international regions,” commented Dave Lesar, chairman, president and chief executive officer. “We continue to be successful in executing our strategy of market share growth while maintaining a focus on industry-leading returns. From a global perspective, we achieved record revenues in eight of our product service lines, with four of them – Cementing, Completion Tools, Multi-Chem, and Testing and Subsea – generating record operating income as well.

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 32.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 40.4% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 22.7% from the year earlier, while the figure increased 49.8% in the fourth quarter of the last fiscal year, 25.6% in the third quarter of the last fiscal year and 54% in the second quarter of the last fiscal year.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 3 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 76 cents per share, down from 88 cents ninety days ago. The average estimate for the fiscal year is $3.22 per share, down from $3.60 ninety days ago.

Competitors to Watch: Baker Hughes Incorporated, Schlumberger Limited., Weatherford Intl. Ltd., Cameron Intl. Corp., Complete Production Services, Inc., TETRA Technologies, Inc., RPC, Inc., Helix Energy Solutions Group Inc., Oceaneering International, and National-Oilwell Varco, Inc.

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

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