Halliburton Earnings on the Horizon

S&P 500 (NYSE:SPY) component Halliburton (NYSE:HAL) will unveil its latest earnings on Wednesday, October 17, 2012. Halliburton provides oilfield technologies and services to upstream oil and gas customers worldwide.

Halliburton Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 68 cents per share, a decline of 27.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 76 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 71 cents during the last month. For the year, analysts are projecting profit of $3.12 per share, a decline of 7.1% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at net income of 80 cents a share versus the estimate of profit of 75 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between July 18, 2012 and October 11, 2012, the stock price rose $3.80 (12.6%), from $30.17 to $33.97. 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.

Wall St. Revenue Expectations: On average, analysts predict $7.15 billion in revenue this quarter, a rise of 9.2% from the year-ago quarter. Analysts are forecasting total revenue of $28.58 billion for the year, a rise of 15.1% from last year’s revenue of $24.83 billion.

Analyst Ratings: With 21 analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 32.3% over the last four quarters.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 25.6% in the third quarter of the last fiscal year, 49.8% in the fourth quarter of the last fiscal year and 22.7% in the first quarter before declining in the second quarter.

The company’s gross margin shrank by 3.1 percentage points in the in the second quarter. Revenue rose 21.9% while cost of sales rose 26.7% to $5.97 billion from a year earlier.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.82 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 improved this liquidity measure from 2.79 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 4.3% to $12.53 billion while liabilities rose by 3% to $4.44 billion.

A Look Back: In the second quarter, profit fell 0.3% to $737 million (79 cents a share) from $739 million (80 cents a share) the year earlier, but exceeded analyst expectations.

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

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