Halliburton Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Halliburton (NYSE:HAL) will unveil its latest earnings tomorrow, Friday, January 25, 2013. Halliburton provides oilfield technologies and services to upstream oil and gas customers worldwide.

Halliburton Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 61 cents per share, a decline of 39% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 61 cents during the last month. Analysts are projecting profit to rise by 11.6% compared to last year’s $2.97.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the third quarter, the company reported net income of 67 cents per share versus a mean estimate of profit of 67 cents per share. In the second quarter, the company beat estimates by 5 cents.

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Stock Price Performance: Between November 20, 2012 and January 18, 2013, the stock price had risen $5.79 (18.3%), from $31.71 to $37.50. The stock price saw one of its best stretches over the last year between September 4, 2012 and September 14, 2012, when shares rose for nine straight days, increasing 16.5% (+$5.29) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 9.4% (-$3.52) over that span.

A Look Back: In the third quarter, profit fell 11.9% to $602 million (65 cents a share) from $683 million (74 cents a share) the year earlier, meeting analyst expectations. Revenue rose 8.6% to $7.11 billion from $6.55 billion.

Here’s how Halliburton traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

HAL

Analyst Ratings: With 20 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 36.9% in the fourth quarter of the last fiscal year, 30% in the first quarter and 21.9% in the second quarter before increasing again in the third quarter.

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 0.3% in the second quarter and then again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.78 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.82 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.6% to $4.6 billion while assets rose 1.9% to $12.77 billion.

Wall St. Revenue Expectations: Analysts predict no change in revenue from the year-earlier quarter to $7.06 billion.

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